The South African Revenue Service (SARS) has confirmed that it has received 1 213 646 applications for tax directives for withdrawals from the Savings Withdrawal Benefit of the two-pot system.
For the latest finance news, bookmark The South African website’s dedicated section for free-to-read content
Of that total number of applications, 1 148 729 tax directives were approved for funds to be released.
The remainder (64 917) were declined for a variety of reasons, including incorrect Identity Numbers and incorrect tax numbers.
A total gross lumpsum of R21.4 billion has been paid out to date.
The new system began exactly six weeks ago on 1 September 2024.
Digital channels are simple and easy to use
In line with SARS’ intent for taxpayers to use digital channels, SARS announced that the simulated WhatsApp calculator was used 51 547 times since implementation of the process.
The simulated calculator on the SARS website, which forms part of the SARS Online Query System, has been used 655 801 times.
SARS has also received 53 519 and queries through the voice channel, and 8 655 at branches.
Taxpayers are encouraged to continue to use the digital channels, which are simple, easy and user-friendly. Using these channels means taxpayers do not have to leave their homes or places of employment to stand on undignified queues.
SARS thanked retirement fund management entities for their friendly and professional co-operation that has allowed SARS to play its part effectively and efficiently by speedily issuing the volumes of tax directives needed to date.
No outstanding debt
SARS reminds taxpayers who want to apply for a withdrawal to make sure that they verify their tax numbers, have supplied the correct Identity Numbers and that they do not have any outstanding debt with SARS.
After a registered taxpayer has applied, a successful tax directive informs the fund management how much tax to deduct from a withdrawal.
Directive applications are accepted by SARS 24/7 and processed within an hour 365 days a year from 08:00 to 19:00.
Unless a directive application is submitted outside of these hours, the response if the taxpayer is compliant be sent to the fund within an hour.
Before a final amount is paid to the applicant, the pension fund will be informed to also deduct any outstanding debt on behalf of SARS before any payout is made to the member.
If a person has a debt arrangement with SARS, the withdrawal will not be affected.
If there is a debt owed to SARS, it will be deducted in terms of such arrangement.
Taxpayers are reminded that tax will be imposed on a withdrawal at a marginal tax rate ranging between 18%-45% depending on their scales.
Despite this public information, there are taxpayers who are wilfully understating their incomes.
SARS Commissioner Edward Kieswetter said that “SARS is deeply concerned that 213 654 taxpayers have been identified where they have declared incorrect taxable income with the view to have a more favourable tax rate. If a taxpayer understates their income, they are intentionally involved in evading their tax obligation. A penalty will be imposed on taxpayers who have understated income. Finally, I wish to caution taxpayers to refrain from this conduct that borders on criminality as there are real consequences for this behaviour”.
Have you withdrawn from your savings?
Let us know by clicking on the comment tab below this article or by emailing info@thesouthafrican.com or sending a WhatsApp to 060 011 021 1
You can also follow @TheSAnews on X and The South African on Facebook for the latest SARS news.
