7 October 2022
By Annalise de Meillon Muller, Manager: Distribution and Sales Support at Glacier by Sanlam
In the 11 August 2022 issue of Glacier Weekly we provided information on the draft bill relating to the proposed two-pot retirement system. In this article, we provide a short update on the draft response from the authorities on the draft bill itself, after the public commentary process. This draft response was presented by National Treasury and SARS to the Standing Committee on Finance on 20 September.
As background to some of the issues clarified during this presentation, remember that the two-pot retirement system will retain the current principle of EET (i.e. exempting contributions, exempting growth, taxing withdrawals and benefits).
At-a-glance summary of selected responses to the proposed changes
We anticipate that further clarification will be added to the 2022 draft Revenue Laws Amendment Bill that will be promulgated in the future. It is very possible that some of the above detail may change slightly with the final wording on the bill. These amendments are still only proposals.
