Owing money to SARS, we can help you make SARS payment arrangements

Manage your tax debt

Do you have outstanding taxes? Do you need help deciding what to do or whom to call?

This page will provide you with information to assist you in sorting out your tax debt.

Taxpayers, both individuals and businesses, are required to be fully tax compliant through on time submission of returns and payments.

In instances where taxpayers are not compliant and have outstanding tax debt, we can liaise on your behalf with SARS Debt Management department, we assist businesses and individuals to become fully compliant.

In order to avoid penalties and interest it is best to file returns and make payments on time.
If you are not currently able to pay your tax debt, please contact SARS without delay.
In certain circumstances we can reach an agreement with you to defer your tax debt for later payment or for payment by instalments.

Please note the following:

  • SARS has the option to decline the request.
  • Interest will accrue on any unpaid debt.
  • If you dont adhere to the conditions of the payment arrangement the payment agreement will be terminated and normal collection proceedings will resume.

In certain circumstances a compromise may be requested on your outstanding tax debt. You will need to discuss your financial position openly with SARS, we can assist you on this process.

If you require payment arrangements please contact us and we will assist you and provide you with all relevant documentation.

Do you have outstanding tax debt and are unable to settle the amount in one payment?

SARS provides for a deferment, or instalment payment arrangement for outstanding tax debt. You may request and enter into an instalment payment arrangement with SARS. It allows you to pay your outstanding debt in one sum or in instalments over time until you have paid your entire debt including applicable interest. This agreement however would be subject to certain qualifying criteria.

We can request a payment arrangement with SARS.

Criteria for payment arrangements

SARS may enter into a payment agreement only if:

  • The taxpayer suffers from a lack of assets or liquidity which is reasonably certain to be remedied in the future;
  • The taxpayer anticipates income or other receipts which can be used to satisfy the tax debt;
  • Prospects of immediate collection activity are poor or uneconomical but are likely to improve in the future;
  • Collection activity would be harsh in the particular case and the deferral or instalment agreement is unlikely to prejudice tax collection;
  • The taxpayer provides the security as may be required;
  • All outstanding returns and/or recons are submitted.

Tip 1: The payment arrangement must cover the entire debt and SARS may only consider the payment arrangement request when non-compliance has been remedied (i.e. all returns and/or recons are submitted).

Tip 2: If the taxpayer has defaulted on previous payment arrangement, reasonable and valid reasons for the default must be provided before another deferment request can be requested.

If you are not in agreement with your tax debt, you may lodge a dispute.

Even though you are disputing the tax debt you remain under obligation to pay the debt whilst your dispute is being handled.

Application for suspension of payment may be requested while the dispute is being dealt with.

Interest will accrue on any unpaid debt.

It is a criminal offense not to submit a tax return when it is due, and can be a criminal offense not to pay.

If you dont pay your taxes there are a number of debt collection options at SARS’ disposal:

  • Collect the debt from someone who holds money on your behalf Third Party appointments i.e. employer, bank or customer. For more information go to Third Party Appointments
  • Issue a judgement and have your name blacklisted.
  • Attach and sell your assets.
  • Obtain a preservation order in respect of your assets.
  • If you hold assets off-shore, an order can be obtained compelling the assets to be repatriated to South Africa and in the interim your right to trade or to travel can be restrained.
  • Liquidate or Sequestrate your Estate

If you are having difficulties we encourage you to contact us to avoid these collection steps.