Understanding SARS Admin Penalties: A Comprehensive Guide
Table of Contents
Understanding SARS Admin Penalties: A Comprehensive Guide
Have you ever wondered about the SARS admin penalties that South African Revenue Service (SARS) charges? In this blog post, we’ll discuss everything you need to know about these SARS Admin Penalties, from what they are to how they work and what to do if you incur them.
What are SARS Admin Penalties?
SARS admin penalties are charges that SARS imposes on taxpayers for non-compliance with tax laws or regulations. These penalties may arise from various non-compliance issues, such as late filing or payment of taxes, failure to submit a tax return, and incorrect or incomplete submission of returns.
There are two types of admin penalties: fixed amount penalties and percentage-based penalties.
Two types of SARS Admin Penalties
Fixed Amount Penalty
If you fail to submit your tax return on its due date, you’ll incur a fixed amount penalty. The amount of the penalty depends on your income, with penalties ranging from ZAR 250 per month to ZAR 16,000 per month. This penalty is charged every month until you rectify the non-compliance.
A fixed amount penalty is a specific type of penalty that is imposed on individuals or entities for failing to comply with certain obligations. In the case of tax returns, if you fail to submit your tax return by the due date, you will incur a fixed amount penalty.
The amount of the penalty varies based on your income and can range from ZAR 250 per month to ZAR 16,000 per month. This means that individuals with higher income levels will generally face higher penalties than those with lower income levels.
It’s important to note that the penalty is charged every month until you rectify the non-compliance. This means that if you fail to submit your tax return for several months, the penalty will accumulate, resulting in a larger penalty amount.
To avoid this penalty, it’s important to ensure that you submit your tax return on time. If you are unable to submit your tax return by the due date, you can request an extension from the South African Revenue Service (SARS) to avoid incurring the fixed amount penalty.
