
Gross two-pot withdrawals top R43 billion
SARS highlights common errors that can lead to application rejections and warns against attempts to evade tax.
SARS highlights common errors that can lead to application rejections and warns against attempts to evade tax.
Some 20% of applications for tax directives were rejected.
In September, Sanlam received more than 83 000 withdrawal claims, with most coming from members aged 35 to 44, many of whom had a replacement ratio below 50%.
SARS has processed more than 1.2 million tax directives for savings component withdrawals, paying out R21.4 billion to fund members.
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.
Retirement fund members must ensure their fund has their correct details and they are registered as a taxpayer with SARS.