30 September 2025 – The South African Revenue Service (SARS) is always ready to assist taxpayers to fulfil their legal obligations. Taxpayers who owe tax debt may often find it difficult to settle their debt due to financial challenges. SARS has various mechanisms to collect outstanding debt. To explore this matter further, SARS met with the Recognised Controlling Bodies (RCBs) to look at various ways in which taxpayers can be assisted to pay their debts to the fiscus.
At this meeting, the parties discussed the Debt Compromise provision as provided for in Part D of the Tax Administration Act, which may be considered under certain circumstances. We agreed with RCBs to launch an Expedited Tax Debt Process. This is part of a general alignment and commitment between SARS and the RCBs to find ways to recover debt rapidly within the provisions of the Tax Administration Act. The normal debt-compromise process remains open to all taxpayers.
SARS will apply the learnings of the rapid compromise process to enhance the compromise process to benefit all taxpayers. A dedicated single point of entry will be made available for applications from Monday, 13 October 2025. Although this tax-debt compromise process will start with RCBs, depending on the results, SARS may later consider it for all taxpayers.
SARS will communicate this expedited debt compromise process widely, and invite RCBs to collaborate on such awareness sessions, webinars, and targeted communication to facilitate widespread understanding of the process.
Key Features of the Initiative
- a) Expedited compromise process applies to non-disputed tax debts older than 12 months.
- b) Entities currently undergoing final CIPC deregistration, those subject to criminal investigation, and those in business rescue are excluded.
- c) All applicants must provide comprehensive relevant supporting documentation with their submissions. It is important that disclosures are accurate, failing which SARS may not even consider such applications.
- d) Tax practitioners registered with the RCBs can guide taxpayer clients on the requirements for the debt compromise, including supporting documents required in line with Part D of Chapter 14 of the Tax Administration Act.
- e) SARS commits to resolve qualifying applications within four weeks, using dedicated teams and enhanced workflow management.
- f) For taxpayers who remain non-compliant and those not forming part of the compromise process, SARS will revert to normal enforcement actions against non-compliant taxpayers. To make non-compliance hard and costly, such enforcement will include writs of execution of court judgments.
Operational and Technical Enhancements
Dedicated account teams and technical resources, including online appointment systems for tax practitioners, have been activated to support the process and resolve operational challenges.
Follow-Up Actions SARS and RCBs
In line with the discussions held with SARS, RCBs will clarify the requirements for the expedited compromise process and enable its smooth operation.
For further information, please contact [email protected].
