SARS says R21.4 billion has been withdrawn from the Two-Pot pension system

The South African Revenue Service (SARS) has confirmed that it has received to date 1 213 646 request tax guidelines for withdrawals from the Savings Withdrawal Benefit of the two-pot system.

Of the total number of applications 1 148 729 tax guidelines were passed to release funds.

The remainder (64 917) were rejected for various reasons, including incorrect identity numbers and incorrect tax numbers.

A total gross amount of R21.4 billion has been paid out to date.

The new system came into effect on September 1, 2024.

SARS urges taxpayers to use digital channels

In line with SARS’s intention to enable taxpayers to use digital channels, SARS announced the use of the simulated WhatsApp calculator 51 547 times since the process was implemented.

The simulated calculator on the SARS website, which is part of the SARS Online Query System, was used 655 801 time.

SARS has also received 53 519 and questions via the voice channel, and 8 655 at branches.

Taxpayers are encouraged to continue using digital channels, which are simple, convenient and easy to use. By using these channels, taxpayers do not have to leave their homes or workplaces to wait in undignified queues.

SARS thanked the pension fund management institutions for their friendly and professional cooperation, which enabled SARS to play its role effectively and efficiently by quickly issuing the volumes of tax directives required to date.

SARS reminds taxpayers wishing to apply for a withdrawal to ensure that they verify their tax number, have provided correct identity numbers and that they have no outstanding debts with SARS.

After a registered taxpayer files a claim, a successful tax directive informs fund management how much tax should be deducted from a withdrawal.

Directive requests are accepted by SARS 24/7 and processed within an hour 365 days a year from 8 a.m. to 7 p.m.

Unless a directive request is submitted outside these hours, if the taxpayer complies, the response will be sent to the fund within one hour.

Before a final amount is paid to the applicant, the pension fund will be informed to also deduct any outstanding debts on behalf of SARS before any payment is made to the member.

If someone has a debt settlement with SARS, their withdrawal will not be affected.

If there is a debt to SARS, it will be deducted for the purposes of such an arrangement.

Taxpayers are reminded of this tax will be levied on a withdrawal at a marginal tax rate ranging between 18% and 45%, depending on their scale.

Despite this public information, there are taxpayers who deliberately underestimate their income.

SARS Commissioner Edward Kieswetter said: “SARS is very concerned about this 213 654 Taxpayers have been identified who have incorrectly declared taxable income in order to obtain a more favorable tax rate. If a taxpayer underreports his income, he is deliberately engaging in evasion of his tax liability. A fine will be imposed on taxpayers whose income is too low. Finally, I would like to warn taxpayers to refrain from this behavior that borders on criminality, as there are real consequences to this behavior.”

Are you one of those who has withdrawn from your savings?

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