More than R35bn has been withdrawn from pension funds under the two-pot system as of Monday, since the system was introduced on September 1, the SA Revenue Service (Sars) says.
The Revenue Service has apologised for issuing an incorrect figure earlier — just less than R50bn — as the amount that had been withdrawn to date under the new system.
Sars received 2.1-million withdrawal applications and a total of 1.9-million directives were issued, with a total gross value of just over R35bn.
“Since its inception, Sars has observed an unprecedented and steady increase in tax directive applications, likely reflecting the economic challenges faced by households,” the tax authority said.
The difference between directive applications and directives issued was due to 169,509 applications being declined for myriad reasons, ranging from systems failures from the fund management entities to wrong identification number, wrong tax number and so on. A total of 41,523 directives were declined because of insufficient funds, wrong codes and so on, and 28,525 directives were cancelled by taxpayers who changed their minds.
Sars encouraged taxpayers to continue to use the digital channels, which it says are simple, easy and user-friendly.
It said it had been able to accomplish the two-pot work due in large measure to good co-operation by retirement fund management entities.
Sars commissioner Edward Kieswetter cautioned taxpayers to avoid any actions that could constitute criminality, and emphasised the importance of using the correct identity and tax numbers when applying for the withdrawal benefit.
Correction: November 19 2024
This story has been updated to correct an error made by Sars, which initially said almost R50bn had been withdrawn. A later statement corrected this figure to more than R35bn withdrawn from pensions.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.