What if I have an admin penalty?

What is an Admin Penalty?

An Administrative Penalty (Admin Penalty) is a penalty levied under Section 210 of the Tax Administration Act. The Act prescribes the various types of non-compliance which are subject to fixed administrative penalties.

Currently the penalty is collected only for non-submissions of returns. Taxpayers who do not submit their returns will be charged this penalty and have to pay it to SARS.

Top Tip: Regardless of whether you agree or disagree with the admin penalty it is advisable to submit the outstanding return to stop further admin penalties. The penalty will reoccur for every month the return(s) remains outstanding.

Administrative non-compliance penalties comprise fixed amount penalties as well as percentage-based penalties.

The penalty amount that will be charged depends on a taxpayer’s taxable income and can range from R250 up to R16 000 a month for each month that the non-compliance continues.

Note: The Penalty Statement of Account (APSA) will no longer be sent with the penalty assessment notice. The taxpayer can get an APSA through:

What if I don’t agree with the Admin Penalty?

A Request for Remission (RFR) can be submitted when a taxpayer disputes any administrative penalties levied due to non-compliance.
 
If the Request for Remission is disallowed or only a portion was allowed, you may still object to the decision made by SARS and even appeal the decision if you disagree with the outcome of the objection process.
 
Please note that you cannot use the objections process before the RFR is submitted and considered.
 
Administrative penalties recur each month that the taxpayer is non-compliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number. When SARS is dealing with the objection/appeal, partial repayment may be allowed which means certain transactions may be settled.

How can I request an RFR (Request for remission)?

A Request for Remission form can be asked for:

How can I submit an RFR (Request for remission)?

A Request for Remission form can be submitted:

How do I pay my Admin Penalty?

You can pay your admin penalty using one of available payments channels.
 
Please Note:

What will happen if I don’t pay my Admin Penalty?

If the Admin Penalty is not paid, SARS will appoint an agent (such as your employer) to collect the money on its behalf. Click here to find out more.
 
Top Tip: If you submit all outstanding returns, you can, if you have grounds to do so, ask SARS for a decrease of the penalties by Requesting for Remission. Your request must give the reasons in detail to support your request.

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Last Updated: 04/04/2017 3:55 PM     print this page
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 Top FAQs

Why is the Penalty Statement of Account for Income Tax not available on the eFiling?
A search can be done by selecting SARS Correspondence in the left handside menu. Then select Search Admin Penalties to find the notices that has been issued.

Will penalties and interest be charged if I do not submit my return on time?
Yes, penalties and interest will be charged if you do not submit your return by the submission deadline.

What are administrative penalties?
These are penalties raised for offences which constitute non-compliance (e.g. non-submission of an income tax return).

What does the term 'Partially allowed' mean?
Administrative penalties recur for each month that the taxpayer is noncompliant, up to a maximum of 35 months. Each recurring penalty will have a unique transaction number. The term ‘partially allowed’ applies ...