SARS collected more than R2 trillion in net revenue for the 2025/26 financial year, supported by stronger compliance measures and improved data matching. Let’s unpack what fixed amount administrative penalties are, why they are issued, and what you can do if you’ve received one.

Why SARS Issues Administrative Penalties

Many taxpayers are unaware that SARS may require them to submit an annual income tax return, even if they are unemployed, living abroad, or have relatively simple tax affairs.

Over the years, SARS has issued broad public communications and automated emails indicating that certain taxpayers may not need to submit a return. Unfortunately, these messages have sometimes created confusion, leading some taxpayers who were in fact required to file to believe they had no filing obligations.

As a result, SARS has been issuing fixed amount administrative penalties to taxpayers who fail to submit required returns. These penalties accumulate monthly and can become substantial over time. In some cases, additional penalties may also arise where provisional tax obligations have not been met.

Our Advice: File Your Return

With tax season approaching, it's important to remember that even if you believe you may not need to file, you should first verify your filing obligations.

If you are required to submit a return, filing on time is always the safest option and can prevent unnecessary penalties and disputes.

Can You Ask SARS to Waive an Administrative Penalty

Yes. If you have received a fixed amount administrative penalty, the first step is usually to submit a Request for Remission. If SARS refuses or only partly allows the request, you may then be able to lodge a formal objection.

The Tax Administration Act provides circumstances under which SARS may consider waiving these penalties.

Section 217 of the tax administration act – First Incidence of Non-Compliance

Under section 217 of the Tax Administration Act, SARS may remit a fixed amount administrative penalty where the non-compliance occurred for the first time, or lasted for a very short period, provided there were reasonable grounds for the non-compliance and the outstanding obligation has since been remedied.

This relief is not automatic and remains subject to SARS’s discretion.

Section 218 of the tax administration act– Exceptional Circumstances

Under Section 218, SARS must consider remitting penalties where exceptional circumstances prevented compliance.

Examples may include:

• A serious illness or accident.
• The death or serious illness of an immediate family member.
• Natural or human-made disasters.
• Civil unrest or disturbances.
• A disruption in essential services.
• SARS system failures.
• Serious emotional or mental distress.
• Circumstances beyond the taxpayer's control that made compliance impossible.

Supporting documentation will generally be required when relying on exceptional circumstances.

Important: Submit Your Request on Time

A request for remission should be submitted before the due date reflected on your administrative penalty statement of account.

Missing this deadline may limit the remedies available to you.

First Remedy the Non-Compliance

Before disputing or paying the penalty, you should first address the underlying non-compliance.

In most cases, this means submitting all outstanding tax returns. SARS is unlikely to consider a request for remission favourably if the outstanding returns have not been filed.

Need Help?

If you've received a fixed amount administrative penalty and are unsure whether it can be disputed, TaxTim has a step-by-step guide showing how to submit a Request for Remission (RFR) via eFiling, alternatively, reach out to our tax team via the helpdesk so that we can assist.

The sooner you act, the better your chances of resolving the matter before penalties continue to accumulate.