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SARS Penalties

SARS Penalties On Late Tax Returns & Other SARS Disputes

At Taxleaders, we can assist you with all SARS penalties, queries and disputes. 

Tax Returns

SARS Penalties Cannot Be Ignored

SARS penalties for late tax returns and other non-compliant tax affairs can be quite harsh. Additionally, these penalties are charged monthly or part thereof that the tax return is outstanding. Yikes!

SARS announced a change to legislation in December 2021. They can levy administrative penalties to taxpayers who missed the filing deadline for one or more tax returns. However, before this, taxpayers only paid penalties when two or more returns were outstanding.

Now, South African taxpayers that fail to file or pay their tax returns on time are levied interest for failure to file or late filing.

What If I Ignore The SARS Penalty Notification?

The administrative penalties will continue. The penalties range between R250 – R16,000.00 for every month that the non-compliance continues. We don’t recommend ignoring SARS notification and that you speak with a tax specialist as soon as possible.

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What About Penalties for South Africans Abroad?

You are not automatically classified as a non-tax resident if you leave South Africa. You need to formalize your tax emigration, and preferably deactivate your tax number.

Unless you earn below the income threshold, you legally need to submit tax returns to SARS every year. Including all foreign earnings. Additionally, any exemptions or tax credits on foreign earnings must be claimed. Even if you live overseas, you can be taxed on foreign remuneration that exceeds a R1.25 million threshold. However, if you have tax emigrated, be sure you have received the letter from SARS confirming this. If you are unsure, then contact one of our expert tax advisers regarding your residency status.

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