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Obligation of Employer to issue Employees' Tax Certificates
Paragraph 13(1) of the 4th Schedule prescribes that an employer must furnish employees to whom remuneration is paid or has become payable and from which employees' tax in respect of a tax period was deducted, with an IRP 5 certificate within the prescribed period.
If for a valid reason no employees' tax was deducted from the remuneration paid to an employee, an IT 3(a) return must be issued to the employee instead of an IRP 5 certificate.
Paragraph
13(2) of the 4th Schedule prescribes that the employees' tax certificate must
be delivered to the employee within —
- sixty (60) days after the end of the tax year or alternative period;
- fourteen (14) days after an employee has left the employer’s service;
- seven (7) days after the employer has ceased to be an employer; or
- a further period as the Commissioner under special circumstances may approve.
A separate certificate may under no circumstances be issued to the employee in respect of the same remuneration and no blank certificates may be issued.
Foreign employment income: Separate certificates must be issued to the employee if the employee's remuneration consists of local remuneration and foreign remuneration for certain periods during a specific tax year. The nature of person must be indicated as M on the certificate that reflects the foreign employment income.
Codes used on certificates: All income and deductions must be classified according to the different codes allocated for income and deductions. A certificate will be rejected if it does not contain the mandatory information as required and the codes are not in the specified sequence. Codes are listed in AS-PAYE-05-A2.
Declaration by employer: The employer must declare on the annual IRP 501 reconciliation or IT 3 General return that all taxable benefits enjoyed by employees, are reflected on the IRP 5 or IT 3(a) certificates issued.
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