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This is how many South Africans tried to withdraw from the two-pot system in the first day

According to the South African Revenue Service (Sars) Commissioner, Edward Kieswetter, close to 2,500 tax withdrawal directives were processed on the first day (September 1, 2024), when the system came into effect.

Kieswetter told Daily Maverick that Sars is focused on trying to make sure that all the tax directives are processed in the same amount of time as an assessment, that being five seconds, using Artificial Intelligence (AI).

He noted that there are certain requirements one needs to have for your directive to be processed expeditiously.

“The three things that would prevent that would be if you were not registered for tax, you have outstanding returns or you owe Sars money. So, we tried to address that ahead of the two-pot system coming into effect,” the commissioner said.

Kieswetter noted that by Monday night, Sars had received 2,759 tax directives and the revenue service had already processed 2,424 tax directives by Tuesday morning.

This represents R103 million worth of withdrawals from retirement funds and will add around R6.7 million of tax to the fiscus.

High volumes

Due to the high number of South Africans trying to withdraw or process their funds, a number of fund websites had to issue warnings on Monday and Tuesday, including Alexforbes and Momentum.

Old Mutual issues a warning

Old Mutual has warned South Africans that withdrawing from their savings may have huge ramifications for their future.

 

 

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