
SARS anticipates up to R12bn from two-pot withdrawals
This is double the initial estimate of between R5bn and R6bn.
This is double the initial estimate of between R5bn and R6bn.
SARS highlights common errors that can lead to application rejections and warns against attempts to evade tax.
The company says 32% of its membership base have submitted claims with a value of about R6.5 billion.
Some 20% of applications for tax directives were rejected.
More than 361 000 members of the GEPF have accessed their savings under the two-pot system, averaging R27 500 per claim.
SARS has processed more than 1.2 million tax directives for savings component withdrawals, paying out R21.4 billion to fund members.
More than 60% of two-pot withdrawal applicants have come from low-income groups, according to Momentum’s latest figures.
The introduction of the two-pot retirement system has triggered a wave of withdrawal applications, prompting concerns over tax liabilities and the need for improved financial education.
A request for a tax directive will be declined if a member is not a registered taxpayer or has outstanding returns.