7 November 2024
SARS will now use information available to them, to validate the annual remuneration declared in savings withdrawal benefit applications.
Since the implementation of the two-pot retirement system on 1 September 2024, SARS has taken note of the fact that the annual remuneration stated by retirement fund members has been underdeclared in some of the directive applications, 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 may negatively impact taxpayers and result in the incurrence of a tax debt on assessment.
Given the above, the SARS systems have since been enhanced to calculate the taxable amount based on the higher of the:
- annual remuneration amount declared in the Savings Withdrawal Benefit (SWB) tax directive application and
- information available to SARS at the time of the application.
This means that members who have underdeclared their remuneration may pay more than expected in tax.
For more information on this update, see the SARS Tax Directives webpage.
Two-pot Retirement System Calculator and Personal Income Tax (PIT) Registration now available on the SARS USSD channel
Taxpayers who wish to take a savings withdrawal benefit (SWB) from their retirement fund can now use the tax calculator available on the SARS USSD channel. This calculator, which is already available via other channels i.e. WhatsApp, MobiApp and the SARS Online Query System (SOQS), provides an estimate of the potential SWB payout.
Additionally, individuals can now register for Personal Income Tax (PIT) via the SARS USSD channel.
The SARS USSD channel allows users to access SARS services by dialling a service code. By dialling *134*7277#, users are presented with a list of menu items to select from.
Here is how these services can be accessed in three simple steps:
- Two-Pot tax calculator:
- Step 1: Dial the SARS service code and select “Two-Pot tax calculator”
- Step 2: Text and send your SARS registered South African ID number, Tax Reference Number, your expected annual income or taxable income and the amount you plan to withdraw.
- Step 3: Retrieve your calculation results sent via SMS
- Personal Income Tax (PIT) Registration:
- Step 1: Dial the SARS service code and select “Register for tax”
- Step 2: Text and send your personal demographic details: Name and Surname, South African ID Number, email address and physical address.
- Step 3: Retrieve your Income Tax Number allocated to you via SMS
For more information on this and other mobile services available, see the SARS SARS Mobile Tax Services webpage and the updated Guide to SARS Mobile Tax Services.
