{"id":69475,"date":"2026-03-26T12:20:10","date_gmt":"2026-03-26T10:20:10","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=69475"},"modified":"2026-03-26T12:20:13","modified_gmt":"2026-03-26T10:20:13","slug":"sars-administrative-penalties-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/sars-administrative-penalties-what-you-need-to-know\/","title":{"rendered":"SARS penalties: What you need to know"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/strategy-legal-operations\/compliance\/\" class=\"entry-header__link\">Compliance<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tSARS penalties: What you need to know\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tLearn how SARS penalties work, how admin penalties are calculated, and what to do if you receive a penalty assessment notice.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-03-26T12:20:10+02:00\">March 26, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"SARS penalties: What you need to know\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/sars-administrative-penalties-what-you-need-to-know\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/jasper\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/02\/Jasper--350x350.jpg\" class=\"entry-author__image\" alt=\"Jasper Basson\" \/>\t\t\t\t<span class=\"entry-author__name\">Jasper Basson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>The <a href=\"https:\/\/www.sage.com\/en-za\/blog\/2022-23-tax-amendments-how-they-affect-your-payroll\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tax Administration Act<\/a> allows SARS to issue penalties when tax returns aren\u2019t submitted on time.<\/p>\n\n\n\n<p>Until recently, these administrative penalties only applied if a taxpayer had two or more outstanding returns between 2007 and 2020. <\/p>\n\n\n\n<p>That changed on 1 December 2021. <\/p>\n\n\n\n<p>Now, even one outstanding return from the 2021 tax year of assessment can trigger SARS penalties.<\/p>\n\n\n\n<p>These penalties are charged monthly and can run for up to 35 months, or 47 months if SARS does not have your registered address. <\/p>\n\n\n\n<p>That means costs can escalate quickly, often catching businesses off guard.<\/p>\n\n\n\n<p>SARS may issue administrative penalties when a taxpayer is non\u2011compliant with income tax (CIT or PIT), value\u2011added tax (VAT), or Pay As You Earn (PAYE).<\/p>\n\n\n\n<p>Here&#8217;s what we&#8217;ll cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-an-admin-penalty-from-sars\" data-level=\"2\">What is an admin penalty from SARS?<\/a><\/li><li><a href=\"#h-sars-admin-penalty-table-and-calculation\" data-level=\"2\">SARS admin penalty table and calculation<\/a><\/li><li><a href=\"#h-scenario\" data-level=\"2\">Scenario<\/a><\/li><li><a href=\"#h-penalties\" data-level=\"2\">Penalties<\/a><\/li><li><a href=\"#h-how-to-fix-this\" data-level=\"2\">How to fix this<\/a><\/li><li><a href=\"#h-what-happens-if-i-ignore-sars-s-notifications\" data-level=\"2\">What happens if I ignore SARS&rsquo;s notifications?<\/a><\/li><li><a href=\"#h-can-admin-penalties-be-reversed-or-reduced\" data-level=\"2\">Can admin penalties be reversed or reduced?<\/a><\/li><li><a href=\"#h-how-to-pay-your-sars-penalties\" data-level=\"2\">How to pay your SARS penalties<\/a><\/li><li><a href=\"#h-better-safe-than-sorry\" data-level=\"2\">Better safe than sorry<\/a><\/li><li><a href=\"#h-faqs\" data-level=\"2\">FAQs<\/a><\/li><\/ul><\/div>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Payroll tax pocket guide 2025\/26<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>A complete guide for payroll and HR professionals navigating the latest legislative updates in South Africa.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-eaad5c64-7469-44c2-90f8-b1b3f8e41006\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1438\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg\" class=\"single-cta__image\" alt=\"A woman speaks to a colleague off-camera in a modern office.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg 1438w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-admin-penalty-from-sars\">What is an admin penalty from SARS?<\/h2>\n\n\n\n<p>An <a href=\"https:\/\/www.sars.gov.za\/individuals\/what-if-i-do-not-agree\/admin-penalty\/\" target=\"_blank\" rel=\"noreferrer noopener\">admin penalty from SARS<\/a> is a fixed monthly charge applied when a taxpayer fails to meet a tax obligation, most commonly by not submitting a required return.<\/p>\n\n\n\n<p>These penalties are automatic. <\/p>\n\n\n\n<p>Once SARS identifies non\u2011compliance, it issues a penalty assessment notice and continues charging the penalty every month until the outstanding return is submitted.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-sars-admin-penalty-table-and-calculation\">SARS admin penalty table and calculation<\/h2>\n\n\n\n<p>SARS admin penalty calculation is based on fixed monthly amounts that vary according to your taxable income from the previous year.<\/p>\n\n\n\n<p>SARS uses the following scales to calculate admin penalties, subject to certain conditions:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Assessed loss or taxable income for the preceding year<\/strong><\/td><td><strong>Penalty<\/strong><\/td><\/tr><tr><td>R0 \u2013 R250,000<\/td><td>R250<\/td><\/tr><tr><td>R250,000 \u2013 R500,000<\/td><td>R500<\/td><\/tr><tr><td>R500,000 \u2013 R1,000,000<\/td><td>R1,000<\/td><\/tr><tr><td>R1,000,000 \u2013 R5,000,000<\/td><td>R2,000<\/td><\/tr><tr><td>R5,000,000 \u2013 R10,000,000<\/td><td>R4,000<\/td><\/tr><tr><td>R10,000,000 \u2013 R50,000,000<\/td><td>R8,000<\/td><\/tr><tr><td>Above R50,000,000<\/td><td>R16,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-scenario\"><strong>Scenario<\/strong><\/h2>\n\n\n\n<p>Let\u2019s say your taxable income was R1,250,000 for the preceding year of assessment, with two outstanding income tax returns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-penalties\">Penalties<\/h2>\n\n\n\n<p>SARS will levy a R2,000 fine for each outstanding return every month. <\/p>\n\n\n\n<p>That\u2019s R4,000 in penalties <em>every month<\/em>. <\/p>\n\n\n\n<p>SARS will keep penalising you until you submit your outstanding returns, up to a maximum of 35 months from the date SARS assesses the penalty (or 47 months if the taxpayer\u2019s address is unknown).<\/p>\n\n\n\n<p>It\u2019s clear that this administrative penalty can quickly become a significant financial burden.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Payroll tax pocket guide 2025\/26<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>A complete guide for payroll and HR professionals navigating the latest legislative updates in South Africa.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-eaad5c64-7469-44c2-90f8-b1b3f8e41006\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1438\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg\" class=\"single-cta__image\" alt=\"A woman speaks to a colleague off-camera in a modern office.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg 1438w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-fix-this\">How to fix this<\/h2>\n\n\n\n<p>Consider contacting an accountant or tax practitioner to help you get up to date with any outstanding returns.<\/p>\n\n\n\n<p>The first priority is to stop the penalty from recurring.<\/p>\n\n\n\n<p>Submit the outstanding return(s) as soon as possible to prevent additional monthly penalties from accumulating.<\/p>\n\n\n\n<p>Once you\u2019re compliant and the outstanding return(s) have been submitted, you may be able to submit a Request for Remission (RFR).<\/p>\n\n\n\n<p>This is a formal request asking SARS to remit (cancel or reduce) the penalties.<\/p>\n\n\n\n<p>If SARS disallows the RFR or only partially allows it, you may then object and, if necessary, appeal the decision.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>Important to note: <br><br>There is a misconception that you don\u2019t need to submit returns if your company is dormant. <br><br>You must submit zero returns to SARS for dormant companies or risk accumulating penalties.<\/p><\/blockquote><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-happens-if-i-ignore-sars-s-notifications\">What happens if I ignore SARS\u2019s notifications?<\/h2>\n\n\n\n<p>If you ignore notifications from SARS, it will keep levying the administrative penalties and the company will have a non-compliance tax status.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-can-admin-penalties-be-reversed-or-reduced\">Can admin penalties be reversed or reduced?<\/h2>\n\n\n\n<p>Yes, SARS may reverse or reduce admin penalties through a Request for Remission (RFR).<\/p>\n\n\n\n<p>Success depends on the facts of your case, and approval isn\u2019t guaranteed.<\/p>\n\n\n\n<p>However, approval is never guaranteed.<\/p>\n\n\n\n<p>SARS is more likely to consider remission when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This is a first instance of non\u2011compliance<\/li>\n\n\n\n<li>The company was dormant and generated no tax liability<\/li>\n\n\n\n<li>The assessment resulted in a nil payable amount or a refund<\/li>\n\n\n\n<li>Exceptional circumstances applied, such as serious illness or system errors<\/li>\n<\/ul>\n\n\n\n<p>If tax is still payable, SARS is less likely to grant full remission, although partial remission is sometimes approved.<\/p>\n\n\n\n<p>When applying for a reversal of administrative penalties, the following questions are asked:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Was the company dormant?<\/h3>\n\n\n\n<p>If yes, SARS will generally consider the reversal in favour of the taxpayer since it never lost any tax income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Did you receive a refund on submitting your income tax return, or was there a zero payable amount?<\/h3>\n\n\n\n<p>Again, since SARS never lost out on tax revenue, it will generally consider a reversal in this case.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Payroll tax pocket guide 2025\/26<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>A complete guide for payroll and HR professionals navigating the latest legislative updates in South Africa.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-eaad5c64-7469-44c2-90f8-b1b3f8e41006\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1438\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg\" class=\"single-cta__image\" alt=\"A woman speaks to a colleague off-camera in a modern office.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg 1438w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Did you need to pay money in on your tax assessment?<\/h3>\n\n\n\n<p>If you owe SARS money, it\u2019s unlikely to reverse the admin penalties levied.<\/p>\n\n\n\n<p>However, there\u2019s no harm in trying because SARS will sometimes consider partial reversals.<\/p>\n\n\n\n<p>Remember, there is <strong>no guarantee<\/strong> that SARS will reverse penalties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-pay-your-sars-penalties\">How to pay your SARS penalties<\/h2>\n\n\n\n<p>If you agree with the penalty assessment notice, paying it promptly helps you settle what\u2019s already been charged.<\/p>\n\n\n\n<p>But to stop additional monthly penalties from building up, you\u2019ll need to submit any outstanding return(s) as soon as possible.<\/p>\n\n\n\n<p>You can pay SARS penalties through eFiling, electronic funds transfer (EFT), your bank, or a SARS branch. <\/p>\n\n\n\n<p>If you can\u2019t afford to pay the full amount at once, you may be able to apply for a deferred payment arrangement and pay the penalty in instalments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-better-safe-than-sorry\">Better safe than sorry<\/h2>\n\n\n\n<p>Prevention is better than a cure.<\/p>\n\n\n\n<p>If your company is dormant but may become active again in future, speak to your accountant or tax practitioner about keeping the company compliant by submitting zero tax returns.<\/p>\n\n\n\n<p>If your company will not actively trade again, receive income and\/or incur expenses, ask your accountant or tax practitioner to deregister your company with the Companies and Intellectual Property Commission (CIPC) and with SARS for various types of tax.<\/p>\n\n\n\n<p>Above all else, aim for compliance. It has never been more important.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Payroll tax pocket guide 2025\/26<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>A complete guide for payroll and HR professionals navigating the latest legislative updates in South Africa.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-eaad5c64-7469-44c2-90f8-b1b3f8e41006\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1438\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg\" class=\"single-cta__image\" alt=\"A woman speaks to a colleague off-camera in a modern office.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2026\/02\/Tax-Pocket-Guide-CTA-Image-4-1438x810.jpeg 1438w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\">FAQs<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What is the SARS penalty for late submission of a tax return?<\/h3>\n\n\n\n<p>SARS charges fixed monthly administrative penalties when a required tax return is not submitted on time.<\/p>\n\n\n\n<p>The amount depends on your taxable income from the previous year and ranges from R250 to R16,000 per month, per outstanding return.<\/p>\n\n\n\n<p>These penalties repeat every month until the return is submitted, up to a maximum of 35 months, or 47 months if SARS does not have your registered address.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How do I check if I have SARS administrative penalties?<\/h3>\n\n\n\n<p>You can check your SARS penalties by requesting an <strong>Administrative Penalty Statement of Account (APSA)<\/strong>.<\/p>\n\n\n\n<p>This statement shows all penalty assessment notices issued against you, including amounts, dates, and transaction numbers.<\/p>\n\n\n\n<p>You can request your APSA through SARS eFiling, by contacting the SARS Contact Centre, or by visiting a SARS branch (appointment required).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can SARS admin penalties be reduced or cancelled?<\/h3>\n\n\n\n<p>Yes, SARS may reduce or cancel admin penalties if you submit a request for remission, but approval is not guaranteed.<\/p>\n\n\n\n<p>SARS is more likely to consider remission if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This is your first instance of non\u2011compliance<\/li>\n\n\n\n<li>Your company was dormant and generated no taxable income<\/li>\n\n\n\n<li>Your assessment resulted in a nil payable amount or a refund<\/li>\n\n\n\n<li>Exceptional circumstances applied, such as serious illness or system issues<\/li>\n<\/ul>\n\n\n\n<p>You must submit all outstanding returns before SARS will consider your request.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is a penalty assessment notice from SARS?<\/h3>\n\n\n\n<p>A penalty assessment notice is a formal notification from SARS confirming that an administrative penalty has been issued.<\/p>\n\n\n\n<p>It outlines the reason for the penalty, the amount charged, and the period it relates to.<\/p>\n\n\n\n<p>If the underlying non\u2011compliance is not resolved, SARS will continue issuing penalties monthly until you submit the outstanding return.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do dormant companies still get penalised by SARS?<\/h3>\n\n\n\n<p>Yes. Even if your company is dormant, you are still required to submit zero returns to SARS.<\/p>\n\n\n\n<p>Failing to do so can result in ongoing administrative penalties.<\/p>\n\n\n\n<p>If your company has never traded or earned income, you may be able to apply for remission once you are compliant, but penalties can still be raised in the meantime.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What happens if I ignore a SARS penalty assessment notice?<\/h3>\n\n\n\n<p>If you ignore a penalty assessment notice, SARS will continue charging penalties every month and your tax status will remain non\u2011compliant.<\/p>\n\n\n\n<p>Over time, this can affect your ability to obtain tax clearance and may lead to debt collection actions, including third\u2011party appointments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can I appeal a SARS administrative penalty?<\/h3>\n\n\n\n<p>You may be able to challenge SARS\u2019s decision, but the steps matter.<\/p>\n\n\n\n<p>Once you\u2019re compliant and the outstanding return(s) have been submitted, you can submit a Request for Remission (RFR).<\/p>\n\n\n\n<p>If SARS disallows the RFR or only partially allows it, you can object to that decision and, if necessary, appeal.<\/p>\n\n\n\n<p>Because this is a formal, time\u2011sensitive process, it\u2019s often worth working with a tax practitioner or accountant.<\/p>\n\n\n\n<p>This process is formal and time\u2011sensitive, so it\u2019s often helpful to work with a tax practitioner or accountant to ensure your objection is correctly submitted and supported.<\/p>\n\n\n\n<p><em>Editor&#8217;s note: This article was originally published in May 2023 and has been updated for relevance.<\/em><\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how SARS penalties work, how admin penalties are calculated, and what to do if you receive a penalty assessment notice.<\/p>\n","protected":false},"author":1340,"featured_media":69768,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[35,27],"tags":[313,321,213],"business_type":[2,5],"lilypad":[],"context":[],"industry":[],"persona":[6,15],"imagine_tag":[51,85],"coauthors":[450],"class_list":["post-69475","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-strategy-legal-operations","tag-bookkeeping","tag-compliance","tag-tax","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-za","author_name":"Jasper Basson","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-740534235.jpg","imagine_tags":{"51":"Accountants","85":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1340"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=69475"}],"version-history":[{"count":5,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69475\/revisions"}],"predecessor-version":[{"id":76088,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69475\/revisions\/76088"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/69768"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=69475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=69475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=69475"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=69475"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=69475"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=69475"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=69475"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=69475"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=69475"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=69475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}