9 March 2023
On 23 February 2023, we communicated that we expect the files for the new tax year to arrive. We can confirm that we are now in possession of the new fixed rate directives and files that are valid for the 2024 tax year.
We are currently analysing the data and doing what is necessary on our side. We are therefore not yet able to provide the new paragraph 2(2B) fixed rates per affected annuitant. SARS did, however, indicate that all affected annuitants will receive generic letters directly from SARS over the course of the next week or two.
Both Sanlam Life and Glacier will implement the new rates during the course of the month of April 2023, starting on the first of the month, as income runs are actioned throughout the month.
Remember that the new paragraph 2(2B) fixed rates will apply per affected annuitant, unless:
- the annuitant has a valid opt-out instruction loaded from 2022, in which case the new 2(2B) fixed rate will not be applied, and the PAYE rate (or any higher rate on record), will be applied; or
- the annuitant provides the insurer with a new instruction now to opt out of the 2(2B) fixed rates of the directive.
What you can expect in your inbox during March
Sanlam Life will communicate with intermediaries who have affected clients, and provide a list of these clients, as per the previous year.
Glacier will include a list of your affected clients and their new paragraph 2(2B) fixed rates for the 2024 tax year in our daily summary of Electronic Client Communication email to you, on the day before the client letter is sent out. The fixed rate received will appear in the individual client letter available on the Glacier intermediary web. To view this, go to the correspondence tile on the Glacier landing page and filter on the document type Par 2(2B) confirmation letter.
What your affected clients can expect during March
The opt-out and opt-in processes
Thank you in advance for your co-operation; we look forward to a seamless process for the 2024 tax year.
