Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply

SARS penalties: strict rules for 2022

You will face harsh penalties if you are late

SARS is warning that those who fail to submit their tax return on time, will face harsh penalties. The period of leeway which applied to 2021 has now passed.

SARS announced a change to their legislation in December 2021 whereby they would levy administrative penalties to taxpayers who missed the filing deadline for one or more tax returns. Prior to this change, taxpayers only paid penalties when two or more returns were outstanding. 

As a transitional measure, they applied the new rule to 2021 only, in order to give taxpayers time to get their affairs in order. This meant that taxpayers who were late with their 2021 return, immediately received an administrative penalty, but administrative penalties  for 2007 to 2020 only kicked in if two or more  returns were outstanding.

With the start of the 2022 filing season around the corner, late filers must be aware that the period of grace which applied to 2021 has passed. This means that SARS will soon be levying administrative penalties for ALL outstanding returns from 2007 to 2020.  

The administrative penalty for filing a return late is a fixed amount penalty based on a taxpayer’s taxable income. It can range from R250 up to a whopping R16 000 a month for each month that the non-compliance continues.

It is more than important than ever, that taxpayers submit their return on time and do not miss the deadline. Be warned, filing just a day late, WILL result in penalties.

Click here for the 2022 tax season deadlines.

This entry was posted in TaxTim's Blog and tagged , . Bookmark the permalink.

10 most popular Q&A in this category

Do your Tax Return in 20 minutes or less!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.