10 January 2023 – Have you received a Personal Income Tax Administrative Penalty notification?
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If you have received a Personal Income Tax Administrative Penalty notification, this was issued due to the late or non-submission of one or more Income Tax Returns.
To remedy this, please submit your outstanding returns as soon as possible. Failure to do so will result in a monthly recurring admin penalty being levied until you are compliant. For more information, see the info on this webpage or log on to your eFiling profile to view your personalised admin penalty notice. You can submit your outstanding returns via eFiling, the SARS MobiApp, or by booking an appointment with a Branch Agent.
17 November 2022 – Notice
SARS is aware that some taxpayers may have received admin penalty letters / SMSs in error. We are investigating the issue and will communicate with affected taxpayers as soon as possible. We apologise for the inconvenience caused.
10 November 2022 – Administrative penalties for late submission of tax returns
With effect from 1 December 2022*, administrative penalties relating to the late submission of a tax return will be charged when one or more tax return(s) relating to tax years from 2007 up to 2020 are outstanding. Prior to this change, taxpayers were only liable for administrative penalties for late submission if they had two or more tax returns outstanding for these tax years.
What is an Administrative Penalty?
An administrative penalty (“admin penalty”) is a penalty levied under section 210 of the Tax Administration Act (TAA). The TAA prescribes the various types of non-compliance which are subject to fixed amount administrative penalties.
Incidences of non-compliance subject to a fixed amount penalty:
Individuals (Personal Income Tax) –
From 1 December 2022 if a natural person failed to submit an income tax return for years of assessment from 2007 onwards when that person has one or more income tax returns outstanding.
Companies (Corporate Income Tax) –
Penalties will be imposed where the company has failed to submit an income tax return as and when required under the Income Tax Act for years of assessment ending during the 2009 and subsequent calendar years, where SARS has issued that company with a final demand referring to the public notice and requiring the submission of the outstanding income tax return, and the company failed to submit the return within 21 business days of the date of issue of the final demand.
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 for a maximum of 35 months.
The administrative non-compliance penalty for the failure to submit a return comprises fixed amount penalties based 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.
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.
Note: The Penalty Statement of Account (APSA) will no longer be sent with the penalty assessment notice. The taxpayer can request an APSA:
- eFiling for registered eFilers
- By calling the SARS Contact Centre on 0800 00 SARS (7277)
- At a SARS branch. (Remember to make an appointment.)
What if I don’t agree with the Penalty?
A Request for Remission (RFR) can be submitted when a taxpayer disputes any penalty levied due to non-compliance. The taxpayer must provide reasons for the non-compliance for the request to be considered. If the Request for Remission is disallowed or only a portion was selectively 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 refer to the Objections and Appeals page for more information on how to submit a dispute in respect of an Admin Penalty. Please note that you cannot use the objections process before the RFR is submitted and considered. When dealing with the RFR/objection/appeal SARS may remit the penalty or a portion thereof.
How can I request an RFR (Request for Remission)?
A Request for Remission form can be requested:
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 the available payments channels. Please Note:
- If you can’t make a full ‘once off’ payment to pay off the admin penalty debt, you can make a deferred arrangement with SARS.
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.