SARS Debt Collection Status and Expedited Processes

1 Oct

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The September 2025 SARS Debt Collection Data issued by National Treasury paints a clear picture: SARS is collecting steadily, but the tax debt mountain keeps growing. For accountants, the message is simple clients can no longer afford to ignore tax debt.

The Debt Book Keeps Growing

Undisputed debt (not under objection) climbed to R448.4 billion from R415.2 billion in April 2025.
The main culprits are:
- VAT – R151.6 bn
- Corporate income tax – R101.7 bn
- Personal income tax – R82.8 bn
Disputed debt (those under objection or appeal):
- R113.9 billion in September, up from R109 bn in April.
- Driven largely by corporate tax disputes (R46.2 bn).

👉 In total, SARS is managing a tax debt book of about R562 billion.

Collections Are Strong but Uneven

From February to September 2025, SARS collected R95.2 billion from outstanding debt, which is largely on target. Collections ranged between R7.1 bn and R10.9 bn per month. The biggest contributors:

VAT – over R45 bn collected so far.
PAYE – R12.1 bn.
Corporate income tax – R12.1 bn.

Credit Book Shows Progress

The “credit book” (write-offs and adjustments of uncollectable amounts) is shrinking, but showing large figures:

January 2025: –R107.6 bn
September 2025: –R84.5 bn

This signals SARS is cleaning up its books, but uncollectable debt remains a stubborn issue.

What Accountants Should Watch

Debt pressure is rising: Both disputed and undisputed debts are climbing which is a sign that taxpayers are struggling to keep up.
Corporate tax in the spotlight: With R148 bn tied up in corporate income tax (owed or disputed), SARS is likely to ramp up audits and enforcement in this sector.
VAT is non-negotiable: At R151.6 bn owed and R45 bn already collected this year, VAT remains SARS’ biggest focus.
Enforcement tools are ready: Expect more garnishee orders, account freezes, and asset seizures as SARS keeps pace with collection targets.
Advisory opportunities: Guiding clients through compromise processes, settlements, or dispute management is a growing value-add for practices.

The Bottom Line

Act early: Don’t let clients sit on undisputed debt.
Check eligibility: Old debts may qualify for the expedited compromise route. Check out SARS’s Expedited Tax Debt Process and see if your clients qualify!
Stay sharp: Monitor monthly debt collection reports they reveal where SARS is focusing.
Turn it into value: Helping clients navigate this minefield is not just protection, it’s a chance to position yourself as a trusted advisor.