The South African Revenue Service (SARS) has issued its latest update regarding the key figures for tax directives received concerning withdrawals from the Savings Withdrawal Benefit under the new ‘Two-Pot’ retirement system.
Economic challenges faced by households
Since its inception on 1 September 2024, SARS has observed a steady increase in tax directive applications, likely reflecting the economic challenges faced by households.
As of 18 November 2024, a total of 2 153 942 directive applications were received and a total of 1 914 306 directives issued with a total gross value of R35 052 572 876.62.
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.
That means in a period of 79 days there were a total of 2 153 942 applications (valid and not) at an average of 27 265 per day.
Or 1 136 per hour.
Or 19 per minute.
WhatsApp calculator
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.
Simple, easy and user-friendly
SARS remains committed as per the principles and values embodied in our 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.
The work that has been accomplished so far by SARS is in large measure because of good cooperation with retirement fund management entities.
SARS thanked these institutions who play a critical role in the tax ecosystem for their professionalism that has allowed SARS to play its part in efficiently and speedily issuing required tax directives.
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 this benefit.
SARS encourages voluntary compliance and, in this regard, offers a range of communication options on the SARS website to achieve this objective.
Have you needed to withdraw from your retirement savings?
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