SARS: waiving of penalties and deferral of tax debt
COVID-19 tax relief measures
SARS have updated their website with the latest relief measures relating to COVID-19. The following is a direct copy and paste of the text from SARS. Here is the link to the site page if you prefer to read it there: https://www.sars.gov.za/ClientSegments/Individuals/What-If-Not-Agree/Pages/Query-my-debt.aspx
Essentially you need to email SARS with supporting documentation supporting your claim for relief.
How to apply for the waiving of penalties for tax debt:
- Larger businesses (with gross income of more than R100 million) that are incapable of making payment due to the COVID-19 disaster, may apply to defer tax payments without incurring penalties by emailing us on COVID19IPAaboveR100m@sars.gov.za. Note the requirements below.
- Similarly, businesses with gross income of less than R100 million can apply for an additional deferral of payments without incurring penalties by emailing us on COVID19IPAbelowR100m@sars.gov.za. Note the requirements below.
- SARS has created these dedicated mailboxes for instalment payment arrangements (IPA) on Covid-19 relief requests only.
- Any mails received in these mailboxes that are not related to Covid-19 relief instalment payment requests, will be deleted without confirmation of receipt thereof.
- These email addresses are for Covid-19 requests where the taxpayer has historic non-compliance which make them not to qualify for the relief.
- Requests must be made per entity and not at group level.
- A taxpayer must have serious financial hardship which must be attributable to the effects of the COVID-19 disaster;
- The effects must be substantial and material;
- The taxpayer must prove to SARS that an IPA is required because of impact of COVID-19 only and if taxpayer succeeds, then the remittance of penalty will be considered.
When emailing us, please include the following:
- A letter requesting deferred arrangements, stating the reasons for the request and the specific tax periods.
- Latest Annual Financial statements and latest management accounts.
- A list of debtors and creditors.
- Cash flow projections for the next three months.