SARS Two-Pot Retirement System : South African Revenue Service

Organisation : South African Revenue Service (SARS)
Facility Name : Two-Pot Retirement System
Country : South Africa
Website : https://www.sars.gov.za/two-pot-retirement-system/

What is SARS Two-Pot Retirement System?

The “two-pot” system was established by The Revenue Laws Amendment Bill (the Bill) Through this system, you will have access to a portion of your retirement savings without you needing to cash out or resign from the entire pension fund. The Bill that was signed into law by President Cyril Ramaphosa, changes the retirement-fund landscape and will take effect from 1 September 2024.

SARS Two-Pot Retirement System Calculator

The calculator will assist pension fund members with an illustrative amount of what they can possibly expect as a payout. All relevant and accurate information must be provided to get a clear estimate of the payout. The two-pot calculator is also available on eFiling and MobiApp. Taxable Income is calculated based on information available on SARS records and may not match the remuneration value declared on your tax directive application. Additional fees, not included here, may be deducted by your fund administrator.

FAQ On SARS Two-Pot Retirement System

Frequently Asked Questions FAQ On SARS Two-Pot Retirement System

Must I be registered for tax to make a two-pot withdrawal?
Yes. A tax directive will not be granted without a valid tax reference number. Please check if you are registered for tax before you request a tax directive.

How can I change my cell phone number with SARS?
You can use SARS eFiling to change your cell phone number.

How to check if a Tax Directive application has been processed?
Login to www.sarseFiling.co.za (or if you are not registered yet, register first) and follow this user-friendly guide to check if a Tax Directive application has been processed: Guide to the Tax Directive Functionality on eFiling | South African Revenue Service.

Will SARS issue a tax directive if I have any outstanding returns?
No. To check if you have outstanding returns, use SARS eFiling; the SARS Online Query System (SOQS); or you can dial *134*7277# and select option 3.

What happens if I owe SARS?
SARS will first deduct from your savings withdrawal payout to settle any tax debt.

You have the following options to check if you owe SARS money:
** Send an SMS to SARS on 47277 and ask for a balance statement or statement of account. You can use this service without data/airtime.
** Use the SARS USSD channel: dial *134*7277#
** Log on to SARS eFiling and request a statement of account.
** Log on to the SARS MobiApp and request a statement of account.

What if I have a payment arrangement with SARS?
No debt deductions will be made from your savings withdrawal if you have a payment arrangement in place. However, if you are in arrears with SARS, your debt will be deducted from your savings withdrawal.

What happens if I am already paying off debt with deductions from my salary (“garnishee order”)?
A garnishee order does not automatically constitute a payment arrangement. This means that if there is no formal payment arrangement in place, the withdrawal will be set-off against the remaining outstanding debt.

Can I cancel my withdrawal application?
No. Once your retirement fund sends your withdrawal directive application to SARS, your decision to withdraw becomes final.

How to access a Two Pot Retirement System Tax Calculator?
The two-pot calculator is also available on the SARS Online Query System(SOQS), eFiling and MobiApp and SARS WhatsApp Channel.