Please read this post for all the updated details on SARS Late Taxpayers Penalty: How Much is Late Tax Filing Penalty in South Africa?
SARS Late Taxpayers Penalty
In the event that you get administrative penalties, SARS will impose fines. You will probably be subject to continuous monthly penalties if you miss the deadline, which begin at R250 and continue for the duration that your returns are unpaid. A late payment incurs a penalty that is calculated on a percentage basis.
Please note these dates carefully and avoid facing penalties from SARS. In this post we have detailed discussion on SARS Late Taxpayers Penalty amount and way forward. Please read this post and get to know all the specifics.
|
Important Links |
Understanding SARS Late Taxpayers Penalty
SARS is authorized by the Tax Administration Act to impose administrative fines on unfiled tax returns. If there is only one unfiled tax return from the 2021 tax year of assessment, SARS may impose administrative fines under this statute. These monthly penalties, which can be very severe, are assessed for each month that the tax return is not filed, whether fully or partially.
Only late or non-submitted personal income tax (PIT – ITR12) and corporate income tax (CIT – ITR14) annual returns are subject to the fixed-penalty cost, according to SARS. Tax returns are not required to be filed if your annual income before taxes is less than R500,000.
If a taxpayer is in violation of any one of the tax laws, SARS has the authority to levy administrative fines. These areas include income tax (CIT or PIT), value-added tax (VAT), and Pay as You Earn (PAYE).
SARS Late Taxpayers Penalty Overview
| Article Title | SARS Late Taxpayers Penalty |
| Country | South Africa |
| Amount | R250 onwards |
| Waiving form | Request for Remission |
| Further Discussion | Present Here |
How Much is Late Tax Filing Penalty in South Africa?
According to SARS an individual’s minimum penalty is currently R250 per return per month. As a result, there will be a minimum penalty of R1,000 per month in cases where four tax returns are unpaid.
If specific requirements are met, SARS use the following scales to determine administrative penalties:
| Taxable Income or Assessed Loss | Penalty Amount |
| R0-R250,000 | R250 |
| R250,000 R500,000 | R500 |
| R500,001-R1,000,000 | R1,000 |
| R1,000,001-R5,000,000 | R2,000 |
| R5,000,001-R10,000,000 | R4,000 |
| R10,000,001-R50,000,000 | R8,000 |
| More than R50,000,000 | R16,000 |
The highest penalty for a taxpayer is R16,000 per month, and the amount changes based on their assessed loss, or taxable income, for the tax year they are being assessed. It is necessary for your taxable income to surpass R50 million within a specific tax year of assessment in order to be eligible for this penalty. Every month a return remains unfiled, there will still be a SARS penalty.
What to Do Next?
A taxpayer may contest the penalty and ask for it to be waived if they have good cause for not filing an unfiled return. For this file, please submit the returns as soon as you can, ask eFiling for the penalty to be waived, and request a pardon for your late submission.
A SARS spokeswoman stated that taxpayers or their estates must file as soon as possible and then ask for the remission of the penalty because their delay to comply was due to extraordinary circumstances in cases of extreme sickness, accident, or even death.
|
Important Links |
Nonetheless, submit your unfiled returns as soon as you can to avoid fines and correct any non-compliance if you have no valid excuse for not doing so. Additionally, you must file a request for penalty remission or pay the penalty on time. Your accountant can help you locate the missing paperwork and make the penalty payment in order to resolve the pending returns.
What if I Disagree with the SARS Late Taxpayers Penalty
In order to have any fines assessed for non-compliance waived, they might submit a Request for Remission (RFR). There must be an explanation given for noncompliance. If the taxpayer chooses to proceed with the objection and appeals procedures, the RFR may still be rejected.
SARS may be able to reach a settlement on a partial payment. Nevertheless, the objection procedures cannot be used prior to the RFR being filed and taken into consideration. RFR forms are available online or through any SARS branch.
SARS is authorized by Section 99 of the Income Tax Act to collect money from your employer if you do not reply to notices or demands regarding the outstanding penalty. Your pay will be directly deducted for this.
We really appreciate you taking the time to read this article about the SARS Late Taxpayers Penalty on our domain.