In accordance with the new two-pot retirement system, implemented on 1 September 2024, the South African Revenue Service (SARS) has issued tax directives worth approximately R50 billion in two-pot retirement outflows, Cape {town} Etc reports.
Also read: South Africa’s new two-pot retirement system: Key changes and tax implications
The savings pot contains one-third of the total of one’s retirement savings and essentially makes this amount accessible to an individual before retirement.
Since the implementation of this new system, SARS has reported that there has been a noticeable increase in tax directive applications. The continual rise in applications is an indicator of the economic challenges which pose a threat to South African households.
SARS issued a media release on Tuesday, 19 November 2024, which provided the public with updated figures for tax directives concerning withdrawals from the Savings Withdrawal Benefit under the new two-pot system.
The media release revealed that as of 18 November 2024, 2 153 942 directive applications were received and a total of 1 914 306 directives were issued with a total gross value of R49 577 355 406.
Several directive applications submitted had been denied due to lack of proper identification, insufficient funds and incorrect codes or tax numbers.
SARS further revealed that the simulated WhatsApp calculator, which falls apart of the institution’s digital channels, was used a total of 53 693 times since the implementation of the process.
The simulated calculator on the SARS website has been used a total of 850 375 times.
SARS has also received 102 839 queries through the voice channel and 17 627 at branches. The USSD channel received a further 66 048.
Also read:
R21.4 billion paid out in South Africa’s new two-pot retirement system
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