Beware: That two-pot withdrawal may come with a tax surprise

South Africans who dipped into their retirement savings through the new Two-Pot Retirement System could face unexpected tax bills

South Africans who dipped into their retirement savings through the new Two-Pot Retirement System could face unexpected tax bills when filing their annual tax returns.

IOL previously reported that the tax season officially kicked off on July 1 with the start of the auto-assessment period, which runs until July 12. During this time, eligible taxpayers will receive their tax assessments automatically, while those who are not selected will be able to submit their income tax returns from July 13.

The South African Revenue Service (SARS) has already auto-assessed more than 1.9 million taxpayers, paying out about R8 billion in refunds within the first 72 hours of the filing season.

The system, which started in 2024, allows people to access money from their savings pot before retirement.