Tax Practitioner Connect Issue 74 - August 2026
This edition provides taxpayers with practical information to help them stay compliant, meet important filing deadlines, and use SARS services with confidence. It highlights the available payment options, explains key penalties and relief measures, outlines the 2026 Income Tax return filing dates, and shares updates on tax-exempt institutions, Saturday service centre support, and the latest scam alert.
- Paying SARS
- Understanding SARS Individual Tax Penalties and Payments
- SARS Service Centres Open on Saturdays
Paying SARS
Taxpayers can pay SARS in different secure and convenient ways. The payment options include eFiling, the SARS MobiApp, internet banking (EFT), and over-the-counter payments at participating banks.
When paying via eFiling, a payment request is generated and sent to the taxpayer’s bank. The taxpayer must then authorise the transaction through their banking app. This is known as a credit-push payment, and it can be completed only if sufficient funds are available.
With internet banking, taxpayers must use SARS-listed beneficiary names, all beginning with “SARS”. It is important to use the correct payment reference number, which ensures that the payment is allocated to the right account.
The SARS MobiApp also allows taxpayers to pay directly from their Statement of Account (SOA) or the Notice of Assessment (ITA34). From the SOA, taxpayers can choose the amount they want to pay. From the ITA34, they must pay the full balance due.
Foreign taxpayers who do not have a South African bank account can use the SWIFT method to pay through FNB only.
Remember: The use of electronic payments and correct referencing reduces payment delays and improves the service experience.
For more information, go to: How do I pay and How do I make payment arrangements.
Scam Alert — “Tax Return Notification”
A new scam wave is circulating via SMS and email, telling recipients they are owed a refund and directing them to a fraudulent website to claim it.
If you receive such an email, please delete and block it. If in doubt, email the SARS IT Security team at [email protected] or visit the Scams & Phishing webpage to see the latest scam examples.
Understanding SARS Individual Tax Penalties and Payments
Missing SARS deadlines can lead to heavy financial costs. SARS enforces strict compliance using a dual system of fixed-rate administrative penalties and interest charges.
- How Administrative Penalties Work
SARS levies an administrative penalty under Section 210 of the Tax Administration Act (TAA) when taxpayers do not submit a tax return on time.
- If an income-tax return is submitted after the filing season closing date, administrative penalties can be levied, and the penalties increase monthly.
- Monthly multiplier: The penalty is not a once-off fine. It recurs every month until the missing return is submitted.
- Duration limits: The penalty can repeat monthly for up to 35 months if SARS has the taxpayer’s address, or up to 47 months if the address is outdated.
- One-return rule: Taxpayers will face an immediate penalty for even a single outstanding tax return from 2007 onwards.
Sliding-scale Breakdown
The penalty amount depends directly on taxable income or assessed loss from the previous tax year:
Taxable Income Bracket/ Assessed-Loss | Monthly Penalty Amount | Max Cost over 35 Months |
Assessed Loss/Low Income | R250 | R8 750 |
Estimated R250 000–R500 000 Income | R500 | R17 500 |
High-Income Brackets | Scales up to R16 000 | Scales up to R560,000 |
- Understatement Penalties and Interest
Making a mistake or under-reporting income triggers different financial consequences.
- Understatement penalty: If taxpayers do not declare income or claim incorrect deductions, SARS applies a percentage-based penalty. This can range from 10% to 200% of the tax shortfall, depending on whether it was a careless error or intentional tax evasion.
- Interest charges: SARS charges interest on all late payments or unpaid tax debts. As of March 2026, the official SARS interest rate for late or underpaid tax is set at 10.25% per year.
- Payment Methods and Relief Options
Taxpayers who owe SARS money or face a penalty-assessment notice must act quickly using official channels.
- Settle the debt: Payments can be made securely through eFiling, SARS MobiApp, or with EFT using the unique SARS-issued Payment Reference Number (PRN).
- Request for Remission (RFR): Taxpayers with a valid reason for missing a deadline — such as serious illness, a severe accident, or an official error by SARS — can file an RFR via eFiling to ask SARS to waive the penalty.
- Payment arrangements: Taxpayers unable to pay the full amount immediately can use SARS eFiling to apply for a Deferred Payment Arrangement or an instalment plan to avoid aggressive collection steps.
For more information, go to: Admin Penalty.
Income Tax Return Filing Dates
Please note the Income Tax return filing dates.
- Non-provisional individuals: 13 July to 23 October 2026
- Provisional taxpayers: 13 July 2026 to 22 January 2027
- Trusts: 19 September 2026 to 22 January 2027
The Latest Tax-Exempt Institutions Connect Is Now Available
The August 2026 issue covers key information that entities applying for Income Tax Exemption should be aware of. This includes selecting the correct “Nature of Entity” when registering for Income Tax, as well as selecting the correct Exempt Institution category when applying for Income Tax exemption. The newsletter recaps the requirements for Section 18A tax-deductible receipts and the submission of IT3(d) third-party data to SARS.
SARS Service Centres Open on Saturdays
Selected SARS taxpayer service centres will open on Saturdays to help taxpayers with filing their Income Tax returns ahead of the Individual Filing Season deadline of 23 October 2026.
For more information, see the relevant notice dated 29 July here.
