SARS is only allowed to enter into a staggered payment agreement in the following circumstances: If you do not accept your tax debt, you can file a dispute. To file a dispute, please consult objections and appeals. Even if you challenge the tax debt, you still have to pay the debts while your dispute is being processed. In certain circumstances, SARS may reach an agreement with a tax payer on the deferral of a tax debt in the event of subsequent payment or staggered payment. A deferral plan is a deferred payment plan when a policyholder is unable to immediately pay the full amount of SARS and wishes to request a payment plan for the payment of the debt. Under this option: The South African Revenue Service (SARS) has published guidelines via a new website on how to request relief on a case-by-case basis to defer tax payments without penalties. Overall, the following channels must be used: Sections 167 and 168 of the Tax Administration Act authorize SARS to enter into an agreement allowing a taxpayer to pay a „tax debt“ in increments. For the purposes of these provisions, a „tax debt“ refers to each amount of tax owed or payable and could therefore be interpreted to include the amounts owed under the interim tax provisions. However, if the taxpayer succeeds in his application for a reduction (referral) of sanctions, the deferral of the payment provisions is only relevant if the taxpayer cannot pay the unpaid taxes within six months from the end of the tax year and cannot obtain a cancellation of interest on the amount of the arrears.
The South African Revenue Service (SARS) has published the enterprise procedure operating in South Africa to request staggered payment agreements, without penalizing the COVID 19 pandemic. The objective of deferring tax payments without imposing penalties is to reduce the cash burden on tax-compliant businesses during the pandemic crisis. This option applies to both small and large companies and multinationals operating in South Africa. Taxpayers who use this plan must be able to demonstrate significant financial and material hardship due to COVID-19. Sanctions will only be applied if taxpayers are able to successfully prove the serious impact of COVID-19 on their operations. SARS provides guidelines for the exemption application to defer tax payments without penalty, was saved from a customs point of view, in a letter to all interested parties dated April 17, 2020, SARS announced its position and decision on the renewal of the customs duty payment in accordance with the Disaster Management Tax Relief Act in 2020. SARS acknowledged its awareness of the economic challenges facing businesses in South Africa and around the world during this COVID 19 pandemic and said it would continue to work with all stakeholders and the government to reduce the impact of the virus on civil and corporate corporations. SARS also informed businesses and merchants of customs payments, including additional payments, that they could request payment in increments. Applications can be made to vonani Ntlhabyane in firstname.lastname@example.org. If, within six months of the end of the tax year, the tax payer pays the total amount of the estimated tax debt, no interest is charged for the late payment of the first and/or second interim tax.