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Non-provisional taxpayers who missed SARS's 23 October 2026 filing deadline could face penalties of R250 to R16,000 a month, depending on their taxable income.
In its 22 October announcement, SARS warned that these penalties can continue for up to 35 months if the return remains outstanding.
Tax practitioners should identify clients who missed the deadline and get their returns submitted as soon as possible to stop further monthly penalties.
Provisional taxpayers and trusts still have until 22 January 2027 to file.
Can SARS cancel penalties for late tax returns?
Filing an outstanding return stops new monthly penalties, but it doesn't automatically cancel those already charged.
Mahomed Kamdar, a tax specialist and independent CIBA consultant, explains that SARS charges the penalty for every month, or part of a month, that a return remains outstanding.
Under Section 217 of the Tax Administration Act, SARS can cancel or reduce up to R2,000 in fixed penalties if the taxpayer meets certain conditions.
There are two ways to qualify. The first applies if the return was less than five business days late. Kamdar notes that this option is no longer available to taxpayers who missed the 23 October deadline and still haven't filed.
The second applies if the taxpayer hasn't received a penalty assessment in the past 36 months.
In both cases, the taxpayer must have a reasonable explanation for filing late and must have submitted the outstanding return. SARS then decides whether to cancel or reduce the penalty.
If you have clients who qualify, have a look at our guide to the SARS dispute process, which explains how to request remission through eFiling and what to do if SARS refuses.
Auto-assessments: 22 January deadline
SARS has expanded its auto-assessments to certain provisional taxpayers for the 2026 filing season.
If these clients agree with their assessments, they don't need to submit another return. However, if SARS has made a mistake, they have until 22 January 2027 to correct it.
Under Notice 7958, this deadline only applies to provisional taxpayers whose auto-assessments were issued on or before 24 November 2026.
Kamdar explains that some provisional taxpayers earn interest or dividends without receiving an IRP5. SARS can still auto-assess them using information provided by banks and other third parties.
He advises tax practitioners to check whether their clients were correctly selected for auto-assessment and whether SARS included all their income and deductions.
“Tax practitioners should therefore revisit and update their terms of engagement with clients who may be affected by auto-assessments,” he says.
Why some SARS refunds take longer than 72 hours
Between 1 July and 19 October 2026, SARS paid 85% of refunds within 72 hours.
However, refunds can take longer if SARS needs to verify a client's banking details or check their tax return.
Kamdar explains that banks may report accounts as inactive, which can delay refunds until the details have been verified. He also warns that submitting three or more versions of the same ITR12 may increase the chances of SARS selecting the return for verification or audit.
If a client's refund is delayed, check whether their banking details are correct and whether SARS has requested any supporting documents.
“Tax practitioners should exercise due care when preparing and submitting returns, rather than relying on repeated corrections,” says Kamdar.
