SARS receives R4.1bn two-pot withdrawal applications
The South African Revenue Service said on Wednesday that it had received 161,607 tax directive applications for the two-pot retirement system.
The applications total some R4.1 billion.
SARS Commissioner Edward Kieswetter said contributions made to a pension or retirement fund were not taxed at the time of payment to the fund but deferred to the time the person retires and then taxed at a reduced rate.
However, when 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,” he added.
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