Day: August 26, 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, said the South African Revenue Service (SAPS).

‘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 South African Revenue Service (SARS) will be rejected,’ the revenue service said.

A member making a two-pot withdrawal will typically be in employment and therefore, earning employment income, which may or may not be above the tax threshold, depending on the outcome of the withdrawal – the sum to be added to the employment income.

READ | Finance Deputy Minister urges responsible use of retirement savings

‘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 Therefore, tax will be deducted from any amount withdrawn.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.

‘The guiding principle on the amount of tax payable is that all amounts
earned or withdrawn from the fund will determine the final tax rate. Any under or over deduction of tax from a two-pot withdrawal will be settled in favour of the taxpayer or SARS on assessment during the annual filing season,’ SARS said.

If a member chooses not to withdraw from their savings pot before retirement, the remaining funds will be taxed as a lump sum benefit upon retirement. These tax rates are generally lower than the marginal tax rates applied to withdrawals before retirement.

‘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.’

Pension fund members can register for tax using the eFiling channel at www.sarsefiling.co.za or the SARS MobiApp.

They can also use the SARS Online Query System (SOQS) on the SARS website (www.sars.gov.za) to register for Personal Income Tax.

‘If they are already registered, they can use the SOQS to check their tax reference number. An application for a tax directive by a fund administrator can only be made once a member has made a final decision to make a withdrawal.

‘After a registered taxpayer has applied, the pension fund will apply to SARS for a tax directive. The successful directive informs the fund how much tax to deduct from a withdrawal. If a taxpayer is fully compliant, it will take up to 48 hours for SARS to issue the tax directive to the pension fund containing information about the tax liability of the pension fund member (how much tax should be deducted from the withdrawal),’ SARS said.

Before a final amount is paid to the applicant, the pension fund will be informed to also deduct any outstanding debt on behalf of SARS before any payout is made to the member.

If a person has a debt arrangement with SARS, the withdrawal will not be affected. If there is a debt owed to SARS, it will be deducted in terms of such arrangement.

‘The
Fund Administrators are encouraged to trade test with SARS, so that the process can be seamless once everything starts. The opportunity is still available until 30 August 2024.

‘A tax calculator is available on eFiling and the SARS website (www.sars.gov.za) to 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.

‘The tax implications for pension fund members who earn below the tax threshold and then make a withdrawal from the savings pot will only be finalised during the annual Filing Season when taxable income will be determined, taxed at 18%,’ SARS said.

Pension fund members are encouraged not to visit SARS branches, as SARS has put in place easy-to-use digital channels to help pension fund members, as well as the following mobile phone channels:

WhatsApp: save the SARS WhatsApp number, 0800 11 7277, on your contact list. To begin your query, type in ‘Hi’ or ‘He
llo’.

SMS number 47277 or USSD code *134*7277#

Source: South African Government News Agency

President Bola Tinubu has approved the appointment of new Directors-General for the National Intelligence Agency (NIA) and the Department of State Services (DSS).

According to a statement on Monday by Ajuri Ngelale, the President’s spokesman, Amb. Mohammed Mohammed has been appointed as the new D-G of the NIA, while Mr Adeola Ajayi takes the helm at the DSS.

‘Amb. Mohammed has had a distinguished career in the foreign service since joining the NIA in 1995.

‘He has served in various roles, culminating in his promotion to the rank of Director and his subsequent appointment as the head of the Nigerian mission to Libya.

‘The 1990 graduate of Bayero University, Kano, had served in North Korea, Pakistan, Sudan, and at the State House, Abuja.’

He added that Ajayi had risen through the ranks to attain his current post of Assistant D-G of the Service.

He said Ajayi had served as State Director in Bauchi, Enugu, Bayelsa, Rivers, and Kogi at various times.

He said the new appointments followed the resignation of
the previous NIA and DSS chiefs.

‘President Tinubu expects the new security chiefs to work tirelessly to reposition the two intelligence agencies for better results.

‘He charges them to bring their experience to bear in tackling the security challenges facing the country through collaboration with sister agencies and in alignment with the Office of the National Security Adviser (ONSA).

‘The President thanks the outgoing Directors-General of the two pivotal intelligence agencies for their services to the nation while wishing them success in their future endeavours,’ said Ngelale.

Source: News Agency of Nigeria

The Centre for Management Development (CMD) says any individual who operates consulting training, without accreditation is liable to six months imprisonment or a fine of N250, 000 or both.

Mrs Modinat Olusoji, the acting Director General (D-G) of CMD disclosed this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

Olusoji added that unaccredited corporate entity engaging in management development training is equally liable to a fine of N1 million.

She said the newly amended establishment Act of the Centre makes provision for the sanctions and empowers the body to enforce the law.

NAN reports that CMD and the Nigerian Council for Management Development (NCMD) were established in 1973 to regulate management consultancy training through the accreditation and registration of management trainers, training firms and institutions.

The 1973 establishment Act was amended in 2022 and statutorily empower the bodies to sanction unaccredited trainers and firms.

Olusoji said that the centre ha
d put machinery in place for the implementation of the amended act on sanctioning unaccredited management training centres in the country.

She said the centre was also carrying out campaign to sensitise stakeholders to the development.

‘We are using every form of advocacy, including our accredited trainers to be our ambassador wherever they go.

‘We are also trying to put some other activities in place to ensure that those unaccredited gets accredited because we don’t want to just go in the way of enforcing sanctions.

‘We want to educate them on the consequences, so that they can voluntarily come forward to be accredited, she said.

Olusoji added: ‘Another thing we have done is to educate Nigerians on the need to patronise only accredited trainers and management consultants.

‘If you want to know whether a firm is accredited or not, just asks for its accreditation number or the name, go to our website and carry out a check’.

The DG underscored the need for standardisation in management training and urged
stakeholders to work together to sanitise the environment ensure that the investment in the sector yields satisfactory result.

She said that the centre’ mandates were derived from the need for human capacity development, provision of services in the area of management training, research, consultancy and education.

This she said would ensure improvement of performance and productivity in all sections of the economy.

Source: News Agency of Nigeria

The Chairman, Equipment and Protective Applications Nigerian Limited (EPAIL), Kola Balogun, says the development of Ajaokuta Steel Company Limited, is key to developing a viable defence industry in Nigeria.

Balogun, who is also the Secretary, Defense Industrial Association of Nigeria (DIAN), said this in an interview with the News Agency of Nigeria (NAN) in Abuja.

He said the new Defence Industries Corporation of Nigeria (DICON) Act that supports private sector delivery was a milestone in terms of era change in defence production in Nigeria.

He, however, urged President Bola Tinubu to go further to ensure that involvement of local defence companies were supported with the development of steel industry.

‘Ajaokuta is a major driver, it’s a major instrument for defense development. Armoured tank, guard boot, light armoured vehicle, all form of APC, ammunition, weapons, are all steel.

‘So, this is why the Ajaokuta coming to stream is very, very inevitable, it’s very important.

‘So, the government must ensur
e that there is an interface, there is a collaboration between the private sector and the defence industry and the management of Ajaokuta steel industry.

‘We must be part of the entire development so that we can hold on to some of the equipment we can make use of.

‘We can make sure the raw materials that are coming out are part of what we use and we cannot export.

‘Who says we cannot export arms from Nigeria? Who say we cannot export weapons from Nigeria? These are things that are possible,’ he said.

Balogun also called for increased support from the government to meet the defence needs of the nation’s military and those of other security agencies in the country.

He also advocated for the creation of free trade zone for the defence industries as well as incentives to be able to sustain private sector investments in the industry.

‘We need continuous support from the government in terms of funding, in terms of incentive, tax relief.

‘If perhaps all defence related industries can be given the status of fr
ee trade zone, this will go a long way.

‘So, I will advocate for a free trade zone status for the entire defence industry, for us to be able to have liberty to export and at the same time, do incentive to keep investing.

‘This is so that we can actually domicile most of those development and we will be able to go into further research and development to strengthen our capability,’ he added.

The expert also called on the government to prioritise the local industries in defence procurement by according them first right of refusal on any form of procurement.

He also called for high protection for every military industrial complex across the country by armed personnel with a view to adequately control what they do.

Source: News Agency of Nigeria