What is Code 4582 on a South African IRP5?
The retirement fund deduction "remuneration" base explained — how your travel allowance or company car benefit can grow your Section 11F deduction cap.
4582Code 4582 is the taxable ("remuneration") portion of a travel allowance or company car fringe benefit — either 20% or 80% of it, depending on your logbook position. It isn't a separate payment; it's a calculated figure that feeds into the "remuneration" base used to work out your Section 11F retirement fund deduction cap of 27.5%. It only appears if you receive a travel allowance (code 3701) or a company car benefit (codes 3802/3816). Valid from the 2017 year of assessment.
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What Code 4582 Means
Code 4582 doesn't represent money you receive — it's a calculated figure your employer's payroll system works out to support the Section 11F retirement fund deduction. It captures the taxable ("remuneration") portion of two things: a travel allowance (code 3701) and the fringe benefit value of a company car, whether acquired by the employer outright (code 3802) or under an operating lease (code 3816). If a reimbursive travel allowance (code 3702) applied, it counted toward this figure for the 2017 and 2018 tax years only — from 2019 onward, reimbursive travel allowances are excluded from code 4582 entirely.
The reason this matters: your Section 11F retirement deduction cap is 27.5% of the greater of your "remuneration" or your taxable income. Basic salary alone understates "remuneration" for anyone who also gets a travel allowance or company car — code 4582 is how SARS captures the additional slice that should count toward that base.
A travel allowance is only partly taxed upfront. If you submit an accurate logbook showing most of your travel is for business, your employer may apply PAYE to just 20% of the allowance. Without that logbook, 80% is taxed by default. Code 4582 mirrors whichever portion — 20% or 80% — was actually subject to PAYE during the year, not a fixed formula.
Worked Example — How It Grows the Deduction Cap
An employee earns a R30,000/month basic salary (R360,000/year) and receives a R5,000/month travel allowance (R60,000/year, code 3701). No logbook was submitted, so 80% of the allowance — R48,000 — is subject to PAYE and reported under code 4582.
| Item | Annual amount |
|---|---|
| Basic salary (code 3601) | R360,000 |
| Taxable travel allowance portion, 80% of R60,000 (code 4582) | R48,000 |
| "Remuneration" base for Section 11F | R408,000 |
| Section 11F deduction cap (27.5% of remuneration) | R112,200 |
Without code 4582, the deduction cap calculated off basic salary alone would be R99,000 (27.5% of R360,000) — R13,200 less. For an employee making large retirement annuity or provident fund contributions, that difference determines whether the full contribution is deductible in the year it's made, or whether part of it carries forward.
Frequently Asked Questions
What does code 4582 mean on my IRP5?
Code 4582 is the portion of your travel allowance (code 3701) and company car fringe benefit (codes 3802 or 3816) that counts as "remuneration" for retirement fund deduction purposes. It is not a separate allowance or a separate amount you receive — it's a calculated figure your employer's payroll system works out to feed the Section 11F retirement deduction cap. Valid from the 2017 year of assessment.
Why does my travel allowance affect my retirement fund deduction?
The Section 11F retirement deduction cap is 27.5% of the greater of your remuneration or your taxable income. "Remuneration" for this purpose includes not just your basic salary, but also the taxable portion of a travel allowance or company car benefit. Code 4582 captures that portion, so employees with a travel allowance or company car generally have a larger remuneration base — and therefore a larger rand-value retirement deduction cap — than their basic salary alone would suggest.
How much of my travel allowance counts under code 4582?
Either 20% or 80% of the allowance, depending on how much of it is subject to PAYE during the year. If you submitted an accurate travel logbook estimating that most of your travel is for business use, your employer may withhold PAYE on only 20% of the allowance, and code 4582 reflects that 20%. Without a supporting logbook, 80% of the allowance is subject to PAYE by default, and code 4582 reflects the 80% portion instead.
Does code 4582 apply to me if I don't get a travel allowance or company car?
No. Code 4582 is only populated when an employee receives a travel allowance (code 3701) or a company car fringe benefit (codes 3802 or 3816). If neither applies to you, your payslip and IRP5 will not show this code, and your Section 11F remuneration base is simply your normal salary and other standard remuneration codes.
Does code 4582 change how much tax I pay directly?
Not directly. Code 4582 doesn't add or subtract income by itself — the travel allowance and company car benefit are already taxed under their own codes (3701, 3702, 3802, 3816). Code 4582 only affects the size of the "remuneration" figure used to calculate how much you're allowed to deduct for retirement fund contributions, which can indirectly affect your tax if it changes whether your contributions fall within or exceed the Section 11F cap.