Good news from SARS as countdown to two-pot system begins

With the countdown to the implementation of the two-pot retirement claims in less than a week, there’s some good news for those who owe the South African Revenue Service (SARS) and have made debt arrangements.

SARS says if a person has made an arrangement to pay off debt to the entity then their claim from the two-pot retirement system will not be deducted to settle their outstanding debt.

It says all deductions will be made in terms of the existing arrangement plan.

The revenue service has warned pension fund members who are owing without any arrangements that their claims will first be deducted before any payouts are made.

SARS has warned that employees with outstanding tax returns or not registered for tax will not be able to claim. It says members can still register through its website. All claims will be taxed at a rate applicable to an individual.

SARS is urging pension fund members to make use of a tax calculator available on its website to get a sense of how much they will receive after tax.

Media Release: Tax Implications of Withdrawing from Two-Pot Retirement System

Persons who intend to withdraw from the savings pot of the Two-Pot Retirement System from 1 September 2024 must be registered for tax … https://t.co/V969GMBR1p pic.twitter.com/qTrTP1fSl6

— SA Revenue Service (@sarstax) August 23, 2024

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