IRP5 Form Explained (2022)

The South African tax filing season opens at the end of every tax year, and so remittances must be made to the South African Revenue Service (SARS). As a matter of law, individuals and entities must make sure that they submit their tax returns, and comply with their tax obligations as described by the tax regulatory system. 

The South African Revenue Service has made it easier to make these tax returns: you can either visit a tax agent or use the web-based eFiling system. It is very important to provide accurate details of your earnings so as to allow the tax body to determine your true income so as to make a fair assessment of cumulative tax liability, and allowable deductions. 

The IRP5 form is one of the critical documents with which a person’s tax liability is calculated by the SARS. This is done with other source documents, to ensure accuracy and also ensure better record keeping. The IRP5 form is, therefore, an integral part of the process of Taxation in South Africa. In this post, Io dissects IRP5 Form explained to better help us understand what it is, and the role it plays. 

What is IRP5 Form?

The IRP5 form is a provision of SARS. It is a form that all employers should submit to the SARS on behalf of their employees. In this IRP5 document the details of the employee’s income are clearly outlined for the specific tax period in question. In order to ensure complete accuracy especially in the area of the payer’s identity, the IRP5 form also details such information of the tax year as: employee number, name details, identity number, birth date, postal addresses, and income tax references. The employees who receive their salary through bank accounts will have their bank account details outlined on their IRP5 form. 

Apart from the employee details the IRP5 SARS also provides employer details and a unique certificate number. The IRP5 form also caches such details about the employer like Company name, PAYE registration number, physical address, as well as details for the Unemployment Insurance Fund, and Skills Development Levy. 

As you have seen; the IRP5 form is something that every employer must fill to fulfill his obligation to the government, and also to ensure that he helps his employees are able to meet up with their own tax obligations to the government of South Africa. In order to meet up these obligations, one must comply with some regulations. If one does not first comply with these regulations, one cannot meet up to SARS requirements, and may still be liable for some penalties.

What Steps Must I Take To Comply with the Law?

 You Must Register For Income Tax

The law states that if you earn a taxable income that is above the tax threshold (R83 100 per year), you must register as a taxpayer with SARS. There are several ways of registering with the SARS, including visiting the nearest SARS office to get a one-time registration done and going online to the SARS efilling website.

 You Must Submit a Return

After registering with the SARS you must then submit an annual tax return to the SARS. The Tax Returns will be for the income earned during the tax year under review. The tax year is usually from 1 March 2019 to 29 February 2020. 

As an individual, your income tax returns should be completed on an official document called the ITR12​ form. Most times your employer has already made these deductions and supplied the data on the IRP5 form on your behalf. You just have to replicate the same information on your ITR12 form, in the exact same order, and ensure that the information on your IRP5 form tallies exactly with what you put into the ITR12.

Sometimes there is a discrepancy between what is on your IRP5 form, and what is on the ITR12, in that case, there must have been an error on the side of your employer when filling the IRP5 form. Please do not try to fix the error. Just go ahead and fill in the correct information on your ITR12.

How soon will I get my refund?

As mentioned above in the preceding paragraph, sometimes there is an error between the figure that your employer submits and the figure that you submit. Therefore, sometimes one is then supposed to receive some money as compensation. This is called a refund, and SARS can pay refunds as quickly as one day later, although it may sometimes take up to 72 hours. 

If you have experienced a delay in receiving the refunds, you may quickly contact SARS within a few weeks, using their Contact Centre on 0800 007 277 to find out why. They will advise you on any steps to take in order to get your refunds.

When should it be Submitted?

The proper time for filing your tax returns is between 1 July to 23 November. Provisional taxpayers including Trusts may file via eFiling or SARS MobiApp between 1 July to 31 January 2022. Note: If you have received an auto-assessment SMS from SARS, you can file immediately. Even if you have not received an SMS, you can also file immediately your returns immediately.

If you don’t submit your IRP5 and other tax returns on time, you may be liable for penalties.

How should I submit my IRP5?

Your IRP5 has already been submitted to the SARS on your behalf. What you need to do now is to get online, in order to submit your tax returns which are your IRP5 Certificate and your ITR12 form. You can file in these returns online, by making use of SARS eFiling or the MobiApp. As we mentioned in the opening parts of this article you must first register for eFiling on the SARS eFiling website.

Related:

• IRP5 FAQ
• IRP5 Codes List & Meaning
• IRP5 Certificate

You can also file your tax returns at a SARS branch office. Please ensure that you contact the branch by phone first to make an appointment before heading out there, as most branches do not currently welcome walk-ins.