On 25 October 2023, the National Treasury and SARS presented to the Standing Committee on Finance (ScoF) the Tax Bills, including on the draft legislation that incorporates the two-pot system legislation.
The presentation included a Draft Response Document containing a summary of draft responses from the National Treasury and SARS to public comments received during consultation.
Once the responses have been considered by SCoF, they will be presented to the Minister of Finance for approval, including to approve consequential amendments to the 2023 Draft Tax Bills before formal tabling in Parliament.
We may see some announcements about the two-pot system made in the Medium-Term Budget Policy Statement on 1 November 2023. We may also see the revised Revenue Laws Amendment Bill early in November 2023.
The changes are proposed and not final.
Postponing the effective date from
1 March 2024 to
1 March 2025
The cap on the selected amount proposed to be increased from
R25 000 to R30 000
Provident fund members who were 55 or over on 1 March 2021 and who are still members of the same provident fund: to be automatically opted out of the two-pot system but can choose to opt in
The longer period proposed will aid effective implementation and member communication. We will have to wait and see what the final version of the legislation holds for us.
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