Zuko Komisa

Two pot system: R4.1bn tax directives received in the first 10 days of September by SARS.
Applications for the savings withdrawals under the two-pot system totaling R4.1 billion have been sent to the South African Revenue Service (SARS) in the form of tax instructions.
A total of 161,607 tax directive applications have been received, according to SARS. This also applies to the canceled directives.
17,964 tax directive applications every day on average
According to SARS Commissioner Edward Kieswetter, payments made to a pension or retirement fund are not taxed at the time of the contribution; rather, they are taxed at a reduced rate when the individual retires.
SARS received 17,964 tax directive applications every day on average. A total of 159,853 applications, or 98.9% of all applications received between September 1 and September 10, 2024, are related to savings withdrawal benefits.
“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,” the Commissioner said on Wednesday.
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