SARS & Banks: The “Money Movement” Team 💸
Retirement fund benefits aren’t just about rules and governance — they also involve tax and payments.
Two important role players here are:
SARS (tax collection and administration), and South African banks (the rails that move money safely between parties).
SARS: What do they do? 🧾
SARS is responsible for the collection and administration of all national taxes, duties, and levies. In retirement funds, SARS administers the tax affairs relating to contributions and benefits.
Contributions: deductions & administration
Benefits: tax calculation when payable
South African Banks: What do they do? 🏦
Banks support the retirement fund system by facilitating the payment of contributions and the payment of benefits. Think of them as the “secure pipelines” that move money where it must go.
Contributions: moving money into the fund
Benefits: paying members & beneficiaries
Flip & Learn: Money In vs Money Out 🃏
Hover (or tap) to flip each card and lock in the flow.
⬇️ Money IN (Contributions)
What happens when contributions are made?
Answer
SARS administers the tax affairs relating to deduction of retirement fund contributions.
Banks facilitate the payment of contributions into the fund’s accounts.
⬆️ Money OUT (Benefits)
What happens when a benefit becomes due?
Answer
SARS administers the calculation of tax payable when the benefit becomes due and payable.
Banks facilitate the payment of benefits to the member or beneficiary.
Inline Visual: The Simple Flow Map 🗺️
This diagram shows how tax and payments “connect” to contributions and benefits.