Since the launch of South Africa’s two-pot retirement system on 1 September 2024, nearly R50 billion has been withdrawn.
The system splits retirement savings into two portions: a savings pot, holding one-third of funds, accessible before retirement, and a preservation pot.
To tap into the savings pot, individuals must withdraw at least R2,000 from a retirement, annuity, or preservation fund.
As of 18 November 2024, 2,153,942 directive applications were received and a total of 1,914, 306 directives issued with a total gross value of R49 577, 355, 406.14.
The difference between directive applications and directive issued is accounted for in the following manner:
- 169 509 applications were declined for a myriad of reasons, ranging from systems failures from the fund management entities to wrong identification number, wrong tax number etc.
- 41 523 directives were declined because of insufficient funds, wrong codes etc.
- 28 525 directives were cancelled by taxpayers who changed their minds.
In line with SARS’ intent for taxpayers to use digital channels, SARS is pleased to announce that the simulated WhatsApp calculator was used 53,693 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 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.
SARS said it remained committed as per the principles and values embodied in its strategic objectives, which is to provide taxpayers with clarity and certainty on their tax matters and to make it easy and seamless for them to comply.
“In this regard, 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 in undignified queues,” said SARS.
Commissioner Edward Kieswetter cautioned taxpayers to avoid any actions that could constitute criminality and emphasized the importance of using the correct identity and tax numbers when applying for this benefit. SARS encourages voluntary compliance and, in this regard, offers a range of communication options on the SARS website to achieve this objective.
