e@syFile error:" The value of source code (4587) 'xxxxxxx' cannot exceed the lower of R1.25 mil or the total of the values declared under foreign service income codes 'xxxxxx'

Code 4587 is only valid from 2021 year of assessment and is an information code which reports the section 10(1)(o)(i) foreign employment income exemption taken into account by the employer for PAYE purposes on the tax certificate. If the employee received foreign employment income but did not qualify for the exemption in terms of section 10(1)(o)(ii) of the Income Tax Act, then code 4587 will be zero. The exemption limit is R1.25 million per tax year, therefore, code 4587 cannot exceed this value.

Rules for information code 4587:

• If no foreign service income codes are completed, then code 4587 must not be completed.
• If any of the foreign service income codes allowable for the s10(1)(o)(ii) exemption is completed, then code 4587 must be completed.
• The value of source code 4587 cannot exceed the lower of R 1.25 million (the exemption limit) or the total of the values declared under the s10(1)(o)(ii) allowable foreign service income codes.

The following foreign service income source codes are included in the remuneration which qualifies for the s10(1)(o)(ii) exemption and which employers may consider for calculating PAYE, if all requirements are met:

• Income Source codes – 3651,3655,3656,3657
• Allowance codes – 3751,3763,3767,3768,3772
• Fringe Benefit codes- 3851,3852,3855,3856,3858,3859,3860,3863,3866,3867,3870,3875,3878,3879,3881,3883

Read more in the SARS Business Requirement Specification (BRS) 2020 release.

The following error appears on e@syFile:

EXAMPLE:

EXAMPLE: Values as on the employee's tax certificate:

In the example there is a difference of R1. This is due to rounding, because cents are omitted for the remuneration values reported in the IRP5 file.

NOTE: Source code 4587 in the IRP5 file adds up the remuneration values on the payslip screen (code 4587 will not have cents in the file even if the sum of the payslip screen amounts contains cents since cents are omitted in the IRP5 file) , where e@syFile adds the truncated values in the IRP5 file and then compares the two amounts to validate code 4587, resulting in the error. This is not a system error but e@syFile error, SARS has confirmed that this ‘rounding error’ will only be corrected in the e@syFile version for the August 2021 submissions.

A software patch is available please refer to Sage city post: RSA IRP5 Patch: Premier and Classic Release 5.5a/b and Release 5.6a/b is now available for download

The interim solution to resolve this issue:

• Open the final Live IRP5.21 file and search for the line number, the IRP5 number, or employee Name as indicated next to the error messages on the e@syFIle import error log report
• Once you find the correct line, search for the value indicated in the first part of the error message – in this example, 377 932
• Change the value to the value as indicated on the validation report. In the example 377 931
• Once completed, save the file and use this file for import into e@syFile

CAUTION:  If a Live Run file is re-created after these steps have been taken. This steps will need to be repeated to correct the values in the file. Do not edit any other fields as this may lead to import errors on the totals in e@syFile.

NOTE: If you require any further assistance, kindly contact your Accountant, Tax Practioner, or Accredited Business Partner