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SARS Processes Over R35 Billion in Withdrawals from New 'Two-Pot' Retirement System

Published November 21, 2024
3 months ago

The South African Revenue Service (SARS) has administered significant withdrawals from the country's newly implemented 'Two-Pot' retirement system, with over R35 billion successfully processed since its inception on September 1, 2024. According to SARS, they received a substantial 2,153,942 applications for tax directives related to the Savings Withdrawal Benefit by November 18, 2024, emphasizing the immediate impact and necessary relief it offers to many South Africans amid ongoing economic pressures.





The response from taxpayers has showcased a robust uptake of the new system, with SARS issuing 1,914,306 directives from the total applications. The difference in numbers between received applications and the directives issued is usual in such large-scale processes and highlights the efficiency with which SARS has managed this complex task.


SARS has pushed for digital convenience, encouraging taxpayers to use its online services. Evident in their recent report, the simulated WhatsApp calculator introduced to help users estimate their withdrawal benefits was used 53,693 times. Further, the SARS website's calculator saw an impressive 850,375 uses. This digital-first approach not only simplifies the process for users but also aligns with contemporary needs for quick and remote access to services.


Physical interactions have not been left behind, though they are less emphasized. SARS reported 102,839 voice channel queries and 17,627 in-person branch visits, with an additional 66,048 interactions via the USSD channel. These numbers underscore the varied preferences among South Africans, though digital channels overwhelmingly dominate the user interactions.


Commissioner Edward Kieswetter praised the cooperation with retirement fund management entities, which has been pivotal in swiftly and accurately managing the withdrawal processes. He also issued a reminder about the importance of adhering to legal requirements, urging all applicants to ensure they use the correct identity and tax numbers when applying for benefits.


In conclusion, the 'Two-Pot' system not only signifies a substantial shift in retirement savings but also in how modern technologies and digital strategies can enhance governmental service delivery. As SARS continues to streamline and optimize its operations, the focus remains on ensuring that taxpayers can access their benefits with clarity, simplicity, and efficiency.


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