The South African Revenue Service SARS says it has successfully processed more than 1.9 million tax directives for pension fund withdrawals under the two-pot retirement system , to the tune of nearly R50-billion as of the 18th of November.
In a statement, SARS says close to 170 000 applications were declined for various reasons including insufficient funds, the wrong tax number and system failure from the fund management entities.
Withdrawals from retirement savings under the new two-pot system have resulted in over R6 billion in taxes to the revenue service.
SARS says since the inception of this system, it has observed an unprecedented and steady increase in tax directive applications, likely reflecting the economic challenges faced by households.
