Two-pot retirement system withdrawal applications total R4.1b
An average of just under 18 000 tax directives have been received by SARS every day since September 1.
SARS has received tax directives worth R4.1b in applications for savings withdrawals in the two-pot retirement system since the beginning of the month.
According to SARS, it has received 161 607 tax directive applications, including those that have been cancelled.
A total of 159 853 directives relate to savings withdrawal benefits, which is 98.9% of the total number of applications received from September 1 to 10. This is an average of 17 964 tax directive applications a day.
SARS commissioner Edward Kieswetter said contributions made to a pension or retirement fund are not taxed at the time of payment to the fund. They are deferred to when a person retires and then taxed at a reduced rate.
However, if an individual withdraws now, they will be taxed at their marginal tax rate.
“Applications for tax directives are submitted to SARS by the fund administrator via eFiling. The directive indicates to the fund how much tax should be withheld by the fund on behalf of SARS before payout.
“Taxpayers who owe SARS money must realise that this tax debt will be added to the tax on withdrawal from the savings benefit. But, if there are payment arrangements in place to settle the debt with SARS, this debt will be deducted as per agreement between SARS and the taxpayer. A tax debt that has been deferred will also not be deducted,” Kieswetter said on Wednesday.
He indicated that the turn-around time for SARS to complete directive applications, without any human intervention, is no more than 24 hours.
The channels used by taxpayers to get more information from SARS about the new system include the SARS Online Query System on the SARS website and the SARS WhatsApp channel (0800 11 7277), where taxpayers can conduct simulated tax calculations on their two-pot withdrawals.
“Applicants give three reasons why they want to make a withdrawal from the new system: A transfer due to divorce, a transfer to a retirement fund or a withdrawal by the taxpayer. As the situation is changing daily, SARS will provide periodic updates on the number of withdrawals.” – SAnews.gov.za
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