The current status
Some retirement funds are currently registered as separate employers with SARS and as such these funds have individual PAYE numbers.
The new process
Retirement funds administered by Sanlam will in future be consolidated into the existing Sanlam PAYE registrations.
What are the advantages of the new process?
This change will result in a number of benefits from a fund’s perspective, namely:
- All fund PAYE payments and reconciliations will be centrally managed by Sanlam Group Tax Services (SGTS) and overseen by a team of tax specialists.
- All future correspondence and negotiations on behalf of the fund will be done by SGTS via the SARS Large Business Centre (LBC). The LBC has a special mandate to assist large corporates such as Sanlam.
- SGTS is represented at the Association for Savings and Investment South Africa and has regular scheduled meetings with SARS, which ensures that practical issues and concerns from retirement funds’ perspective are tabled and resolved at the highest level.
How will the change affect you?
From an administration point of view, the change will not have an impact on the processing of benefit payments nor the existing related service level agreements. In future your fund’s tax certificates will be issued with Sanlam’s details reflected as employer, as well as the Sanlam PAYE registration number.
When will it be implemented?
To facilitate a smooth transition, the change will be implemented after normal business trading hours on 28 February 2018. This date is aligned with the beginning of the new tax year for individuals.
What you need to do?
We will manage this change on our side and there is currently nothing required from you in this regard.
Please feel free to consult your Sanlam Client Relations Manager should you have any questions regarding this matter.