Tax and SARS knowledge base
When does SARS require a tax-directive number on an individual return?
When does SARS require a tax-directive number on an individual return?
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Direct answer
From the 2025 year of assessment, SARS requires a directive number on the ITR12 when the IRP5 income section contains source code 3623 or 3673. Those codes apply to antedated salary or pension paid for past years of assessment.
This is not a rule that every ITR12, bonus or payment requires a directive number. Use the number shown in the employer's or fund's directive and certificate. Do not invent or guess a directive number.
What this means in practice
The directive number is part of a specific reporting chain. The employer or fund applies to SARS for a directive where its process requires one. The directive and the IRP5 or IT3(a) should then contain information that agrees with the amount reported on the ITR12.
For antedated salary or pension, SARS's current guidance is specific. The directive uses source code 3623 for local income or 3673 for foreign income, and the directive number must be captured. SARS also announced that the directive number became mandatory on the ITR12 from the 2025 year of assessment where either of these codes appears in the IRP5 income section.
The taxpayer should review the prepopulated data and the documents received. The taxpayer should not create a directive application or alter certificate data to make a return validate. A missing or incorrect source record needs to be fixed by the employer or fund that supplied it.
Step-by-step
- Check the IRP5 or IT3(a) source code.
Look for 3623 or 3673 in the income section and confirm that the payment is described as antedated salary or pension for past years. Check the year of assessment shown on the certificate.
- Obtain the directive document.
Ask the employer or fund for the directive that relates to the payment. Keep the document with the payment breakdown and certificate. The number should not be sourced from an informal message or an earlier unrelated payment.
- Compare the directive, certificate and ITR12.
Confirm that the source code, directive number and payment details agree across the documents. Read the ITR12 entry carefully before confirming it.
- Ask the issuer to correct an error.
If the directive number is missing, wrong or linked to a different payment, contact the employer or fund. Give it the relevant tax year and certificate details. Ask it to correct the record supplied to SARS where necessary.
- Recheck the return after correction.
Once the issuer confirms a correction, check the prepopulated information again before submitting. Keep a copy of the correction correspondence and revised record.
- Escalate a complicated payment carefully.
Backdated salary or pension can involve detailed payment and accrual information. Where the documents do not clearly explain the payment, obtain tailored help before filing an ITR12 response.
Documents and records to keep
- IRP5 or IT3(a) showing the source code.
- The related SARS tax directive.
- Payment letter and detailed breakdown of the antedated salary or pension.
- Employer or fund correspondence about any correction.
- The ITR12 and SARS assessment notice after filing.
Important limits and exceptions
The mandatory ITR12 directive-number statement in this article is limited to source codes 3623 and 3673 from the 2025 year of assessment. Do not extend it to every directive-related payment without checking the applicable SARS rule.
The directive application is an employer or fund process. This article does not tell an employee to make an application on the employer's behalf, nor does it determine the tax calculation for an antedated payment.
Do not use a directive number from another payment or year. The certificate, payment and directive must relate to the same transaction.
When to get tailored advice
Get tailored help if the source code does not match the payment description, the directive is unavailable, the payment includes several components, or SARS has rejected or queried the return. Help is also appropriate if the payment relates to foreign income or a previous tax year.
TaxProof can help you organise the certificate, directive and payment records for a review. The employer or fund controls the directive application and certificate correction, and SARS processes the return.
Related TaxProof guides
- Employer IRP5 and EMP501 guide
- How do I report a lump-sum amount on my IRP5 and ITR12? (B02-IND-004)