Hi, I transferred my entire provident fund into a retirement fund & a preservation fund. I received 2 IT3A certificates from the administrator indicating the amounts sent to the fund groups. These certificates do not come up automatically on my tax return, do I have to type them in manually or are these documents just indicating what has gone to the funds and I don't have to worry to put anything on my tax return?
You should type them in manually and remember to include the tax directive numbers on the bottom right hand side of the page. There will be no tax payable on these lumpsum transfers.
Cathysays: 23 July 2015 at 16:40
Thanks Tim, very helpful! I see both tax directive numbers and I have entered them on my tax return. When I try calculate my tax return it comes up with error code 9857 saying lump sum declared but directive outstanding. Could this be that the administrator has either typed the wrong number or the numbers have not yet been approved by SARS?
TaxTimsays: 23 July 2015 at 21:40
You should follow up with your Fund Administrator for a copy of the Tax Directive to ensure the details agree with the IT3A certificates and then call SARS on 0800 007 277 to follow up the error message.
Cathysays: 29 July 2015 at 9:02
Hi Tim - I followed up and the tax directives are 100% correct. It turns out my company that I had been working for, for 12 years changed fund administrators in 2012. Hence why I received 2 IT3A's - I just kept paying towards provident fund from my salary. Now that I have moved the funds to a retirement fund the tax directive for the one set of funds would only apply for the tax year 2012. Does this affect me in anyway? The other IT3A says it is for this tax year so I added it manually to my tax return and it accepts everything. I just wanted to check before I filed my tax return. Thank you
TaxTimsays: 29 July 2015 at 10:37
That sounds correct. There are no tax implications anyway on these lump sum transfers. You should go ahead and file.
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