Hello AnnalizeRas

Contributions that are paid to approved Retirement Funds( Pension, Provident or Retirement Annuity) should be loaded on the payroll system with the following IRP5 codes. The following information extracted from Pages 26 and 60 of the payroll pocket guide, may provide you with guidance  Payroll Tax Pocket Guide 2021/2022

Any employee contributions (employee and deemed employee contributions) towards a retirement fund (pension, provident and retirement annuity) are tax deductible, subject to a limit which must be applied by the employer. The employee may contribute more than these limits, but he will only receive the tax benefit up to the statutory limit. Any contributions made by the employee in excess of the limits will reduce the taxable value of any lump sum paid in future.

Once the fund has allowed the extra contributions, you can create the definitions lines on the payroll system using the applicable source codes

Hi Avril,

Ok thank you, so then its right that on the additional pension line on employee deduction side I processed the value (still under Limit) with the definition screen as per below

Hi AnnalizeRas,

Unfortunately we are not able to confirm your setup. Will you kindly confirm with SARS. 

I also found an article for the setup of Pension funds so that you can confirm your setup with the example attached. Please click on this link How do I create a Pension Fund Deduction Line?