Updated Specification for the Two-Pot Retirement System

Since the implementation of the Two-Pot Retirement System on 1 September 2024, SARS has taken note of the challenges the industry is experiencing. To this end, various enhancements have been incorporated into the SARS interface. These enhancements and changes inter alia include:

• Enhancing system parameters to accommodate an annual saving withdrawal benefit from various contracts held with the same fund instead of declining such directives as duplicate directive applications.
• Enhancing system parameters pertaining to the determination of annual income for the purposes of calculating tax on Savings Withdrawal Benefit directive applications

SARS has taken note of the fact that the annual remuneration has been underdeclared in some of the directive applications where the taxpayers are still employed, resulting in a nil or lower tax directive amount being issued. While there are valid instances where a zero declaration is correct, a nil or incorrect tax directive result will negatively impact these employed taxpayers resulting in the incurrence of a debt on assessment. SARS systems will therefore be enhanced to calculate the taxable amount based on information available to SARS and not necessarily on the annual remuneration value declared on the Savings Withdrawal Benefit directive application.

Should you require professional advice in this regard please do not hesitate to contact your regional Nolands Tax representative or contact the below:

Evan Schutte | Director of Nolands Tax
Evans@nolandstax.co.za