Two-Pot Retirement System | South African Revenue Service (2024)

Individuals

Businesses and Employers

Tax Practitioners

Customs and Excise

What’s new?

31 August 2024 – Two-Pot retirement system calculator is now available

The calculator will assist pension fund members with an illustrative amount of what they can possibly expect as a payout. All relevant and accurate information must be provided to get a clear estimate of the payout. See the two-pot calculator here.

More self-service options

Request My Tax Number
Request My Tax Compliance Status
Verify My Tax Compliance Status
Tutorial video: Understanding the Two-Pot Retirement system and its tax implications
Register for Income Tax via:
- SARS Online Query System (SOQS) –Register for Income Tax
- WhatsApp on 0800 11 7277

Frequently Asked Questions for Individuals

SARS makes tax compliance easy for your two-pot savings withdrawal application.

Below, we answer your two-pot tax questions.

Must I be registered for tax to make a two-pot withdrawal?

Yes. A tax directive will not be granted without a valid tax reference number. Please check if you are registered for taxbefore you request a tax directive.

Frequently Asked Questions for Fund Administrators

SARS has put together the following information to empower you for the implementation of the Two-Pot Retirement Fund System.

As you are aware, we have had to make changes to our back-end systems to allow for a Two-Pot related tax directive. These changes impact theTax Directive capture screens on eFiling and the Tax Calculator on eFiling (calculator coming soon).A few of our forms will be enhanced to cater for the new tax directive type and reflect on theIRP3(a); Form A& D; Form B; Form C and the ROT01.

For your ease of reference, we will be updating theGuide to complete the Lump Sum Tax Directive Application Forms.

We have also developed a set of Frequently Asked Questions to assist Fund Administrators to guide members who approach you for a Savings Withdrawal Benefit:

Must a member be registered for tax to make a two-pot withdrawal?

Yes. A tax directive will not be granted without a valid tax reference number. Please advise your member to check if they are registered for tax before you request a tax directive.

How does a member check if they are registered for tax?

Your members can use the following SARS channels:

SARS Online Query System (SOQS)
SARS MobiApp
SARS WhatsApp send a “Hi” or “Hello” to 0800 11 7277
USSD *134*7277#
SMS 47277. For a tax reference number the SMS sent to 47277 must containTRN<Space>ID number/Passport number/Asylum Seeker number.
SARS eFiling.

If a member is not registered for tax, they can visitSARS eFilingor theSARS MobiAppto register.

How can a member check that SARS has their correct cell phone number?

The member can use:

SARS MobiApp
SARS eFiling

How can a member change their cell phone number with SARS?

The member can useSARS eFilingto change their cell phone number.

Will SARS issue a tax directive if a member has any outstanding returns?

No. A member can check if they have outstanding tax returns viaSARS eFiling; theSARS Online Query System (SOQS)or they can dial *134*7277# and select option 3.

Please encourage the member to submit any outstanding tax returns as soon as possible to avoid the tax directive being declined.

What happens if a member has tax debt with SARS?

SARS will instruct the retirement fund to deduct outstanding tax debt from the two-pot withdrawal and pay it over to SARS to set it off against a tax debt.

Your members have the following options to check if they owe SARS money:

Send an SMS to SARS on 47277 and ask for a balance statement or statement of account. You can use this service without data/airtime.
Use the SARS USSD channel: dial *134*7277#
Log on to SARSeFilingand request a statement of account.
Log on to the SARS MobiApp and request a statement of account.

What if a member has a payment arrangement with SARS?

Where a member has a valid debt arrangement or suspension agreement, no debt deductions will be made from the two-pot withdrawal. If the member does not have an arrangement or suspension in place, SARS will instruct the fund to withhold a portion or all the outstanding debt from the withdrawal.

What happens if a member is already paying off debt with deductions from their salary (“garnishee order”)?

How can a member make a payment to SARS?

SARS debt can be paid viaSARS eFilingortheSARS MobiAppor the SARS Online Query System (SOQS).

Can a members withdrawal application be cancelled?

No. Once your retirement fund sends your withdrawal directive application to SARS, your decision to withdraw becomes final.

Will members earning below the tax threshold be able to withdraw without tax being deducted if their withdrawal does not take their taxable income over the threshold?

While taxable income can only be determined accurately during the annual filing season, SARS will attempt to determine the amount of tax on the withdrawal as accurately as possible. Depending on the circ*mstances it is, therefore, possible for a R0 directive to be issued.

Useful information

Individuals – Self help Guide
Fund Front End Employees Guide to assist members
Digital services for Funds
Digital services for Taxpayers
Two-pot branch poster

Webinar on the Two-Pot Retirement System

The “two-pot” system was established by The Revenue Laws Amendment Bill (the Bill) Through this system, you will have access to a portion of your retirement savings without you needing to cash out or resign from the entire pension fund. The Bill that was signed into law by President Cyril Ramaphosa, changes the retirement-fund landscape and will take effect from 1 September 2024.

This webinar educated taxpayers about the implementation of this retirement reform, its savings-withdrawal benefit, and the implications for taxpayers’ retirement funds.

SARS’s strategic objectives are to give taxpayers clarity and certainty about their obligations, and to make it easy for them to comply.

If you have missed the webinar on 22 August 2024, see the:

Recording on the SARS TV Channel
Slideshow presented during the webinar

Media release: Tax Implications of Withdrawing from Two-Pot Retirement System

23 August 2024– Persons who intend to withdraw from the savings pot of the Two-Pot Retirement System from 1 September 2024 must be registered for tax. Those who are not registered must register before they apply to their relevant fund. If a person is not registered for tax, the request for a tax directive sent from the fund to SARS will be rejected.

Contributions to retirement funds are not taxed. Therefore, tax will be deducted from any amount withdrawn. Tax will be calculated at the tax rate applicable to the individual.

Taxpayers must also ensure that they have no outstanding returns and do not owe SARS. Debt owed to SARS will be deducted from the withdrawal amount.

Taxpayers are not required to go to a SARS office, as most applications are available on one of SARS’s digital or mobile channels.

Read the full media release here.

Trade testing for Fund Administrators

30 August 2024 – Updated Specification for Two-Pot retirement system

As you are aware SARS has been making system enhancements to the Tax Directives process to accommodate the Two-Pot Retirement Scheme. While trade testing had already commenced on 1 July 2024, it should be noted that the trade testing has been extended to 30 August 2024 to allow for the testing of the latest changes that had been incorporated into IBIR-006 Tax Directives interimInterface Specification Version 6.706. These updates include:
- Form A&D and Form C validations, regarding the 1/3 allowable lump sum.
The current trade testing link will remain active for trade testing and the NCTS mailbox will remain open until 30 August 2024.
All submissions for trade testers and ISVs to SARS must be concluded by 15h00 on 30August 2024 and will be processed as normal. Any submission received after this cut off time will be rejected. Please note all ISV submissions to SARS henceforth must be based on the IBIR-006 Tax Directives interimInterface Specification Version 6.706 requirements.The steps for submitting test files remains the same as previously communicated.
For trade testing queries please email[emailprotected].
27 August 2024 – Extended Trade Testing and Updated Specification for Two-Pot retirement system
As you are aware SARS has been making system enhancements to the Tax Directives process to accommodate the Two-Pot Retirement Scheme that will commence on 1 September 2024. While trade testing had already commenced on 1 July 2024, it should be noted that the trade testing has been extended to 30 August 2024 to allow for the testing of the latest changes that had been incorporated intoIBIR-006 Tax Directives interim Interface Specification Version 6.705.These updates include:
- Rebates Calculation
- Calculation of 1 third allowable Lump Sum
- Definition of Annual Renumeration of IRP3(a)
The current trade testing link will remain active for trade testing and the NCTS mailbox will remain open until 30 August 2024.
All submissions for trade testers and ISVs to SARS must be concluded by 15h00 on 30August 2024 and will be processed as normal. Any submission received after this cut off time will be rejected. “Live” submissions can commence again after the software implementation on 30 August 2024. Please note all ISV submissions to SARS henceforth must be based on theIBIR-006 Tax Directives interim Interface Specification Version 6.705requirements. The steps for submitting test files remains the same as previously communicated.
For trade testing queries please email[emailprotected].
15 August 2024 – Two Pot Retirement system: Trade testing has been extended until 30 August 2024
Trade testing commenced on 1 July 2024 and has been extended to 30 August 2024. Please note that the current trade testing link will remain active for trade testing and the NCTS mailbox will remain open until the 30^thof August 2024.
The SARS go live as scheduled for Friday 16 August 2024, requires that all submissions for trade testers and ISVs to SARS are done by 15:00 on 16 August 2024. Any submission after this cut off time will be rejected. Processing of files submitted before 15:00 will be as per normal. ISV submissions can commence again after the software implementation on 16 August 2024. Please note all ISV submission to SARS after this release has to be onIBIR-006 Tax Directives interim Interface Specification Version 6.704.
Please follow these steps to submit test files:
Step 1: Before testing can commence, you will need to email 10 taxpayer reference numbers to[emailprotected]to ensure the numbers are active. In the email subject line, use “Tax reference numbers for Trade Testing”. A maximum of 10 taxpayer reference numbers will be allowed.
Step 2: You will be notified via the same email address to confirm when testing may commence.
For trade testing queries please email[emailprotected]
17 July 2024 – Tax Directives software update for the Two Pot Retirement system
To facilitate the upcoming two-pot retirement system changes, SARS will be making enhancements to the Tax Directives process. The changes are detailed inIBIR-006 Tax Directives Interim Specification Version 6.704.Trade testing commenced on 1 July 2024 and will run till 16 August 2024. Please follow these steps to submit test files:
- Step 1: Before testing can commence, you will need to email 10 taxpayer reference numbers to[emailprotected]to ensure the numbers are active. In the email subject line, use “Tax reference numbers for Trade Testing”. A maximum of 10 taxpayer reference numbers will be allowed.
- Step 2: You will be notified via the same email address to confirm when testing may commence.

For trade testing queries please email[emailprotected].

27 June 2024 – Trade testing dates:Tax Directives software update for the Two Pot Retirement system
To facilitate the upcoming two-pot retirement system changes, SARS will be making enhancements to the Tax Directives process. The changes are detailed in IBIR-006 Tax Directives interim Interface Specification Version 6.703.Trade testing will commence on 1 July 2024 and run until 16 August 2024. Please follow these steps to submit test files:
- Step 1: Before testing can commence, you will need to email 10 taxpayer reference numbers to[emailprotected]to ensure the numbers are active. In the email subject line, use “Tax reference numbers for Trade Testing”. A maximum of 10 taxpayer reference numbers will be allowed.
- Step 2: You will be notified via the same email address to confirm when testing may commence.