| Penalty Type | Description | Calculation |
| Failure to Submit a Return or Document | Penalty for not submitting required returns or documents on time. | Calculated monthly until compliance, up to a maximum of 35 months. – Penalty amount depends on assessed loss or taxable income |
| Late Submission of EMP501 | Penalty for late submission of the EMP501 reconciliation. | 1% of the year’s PAYE liability. This penalty increases by 1% monthly, up to 10% of the year’s PAYE liability. |
| Failure to Submit Provisional Tax Returns | Penalty for failing to submit provisional tax returns (IRP6) on time. | Penalty applied for each month of non-compliance. |
| Non-Compliance with Record-Keeping Requirements | Penalty for not maintaining adequate records as required by the Tax Administration Act. | Penalty applied for failure to comply with record-keeping requirements. |
| Failure to Submit Third-Party Data Returns | Penalty for financial institutions and third parties failing to report required data to SARS. | Penalty applied for each month of non-compliance. |
| Failure to Notify SARS of a Change of Particulars | Penalty for not informing SARS of changes in address or other relevant details within 21 days. | Penalty applied for each month of non-compliance. |
| Failure to Comply with SARS Directive | Penalty for not complying with directives or notifications issued by SARS. | Penalty applied for failure to comply with SARS directives or notifications. |
The administrative non-compliance penalties are calculated as follows:
|
Assessed loss or taxable income of R0 – R250,000: |
R250 per month |
|
R250,001 – R500,000: |
R500 per month |
|
R500,001 – R1,000,000: |
R1,000 per month |
|
R1,000,001 – R5,000,000: |
R2,000 per month |
|
R5,000,001 – R10,000,000: |
R4,000 per month |
|
R10,000,001 – R50,000,000: |
R8,000 per month |
|
Above R50,000,000: |
R16,000 per month |
These penalties accumulate monthly until the required return or document is submitted. It is essential to address any non-compliance issues promptly to minimise financial impact.