SARS Recovers R79.4 Billion in Outstanding Tax Debt (Apr–Jan 2025/26)
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According to the latest SARS Debt Collection Data published by National Treasury, SARS has collected R79.39 billion outstanding tax debt during the first ten months of the 2025/26 financial year (April 2025 to January 2026). The figures highlight the continued importance of debt recovery as part of SARS’ broader compliance strategy.
Total Debt Collected So Far
Cash collections from unpaid taxes totaled R79.39 billion year-to-date, with monthly recoveries ranging between R7.0 billion and R9.3 billion. January 2026 alone contributed R8.69 billion in recovered debt. These collections represent tax liabilities that had already been assessed but remained unpaid at the time they became due.
Where the Debt Recoveries Came From
The majority of the recovered debt relates to South Africa’s core tax categories. The largest contributor was Value-Added Tax (VAT), which accounted for R38.78 billion of the total debt collected during the period.
Other major contributors include:
Pay-As-You-Earn (PAYE): R10.07 billion
Personal Income Tax (PIT): R9.52 billion
Corporate Income Tax (CIT): R9.21 billion
Additional collections came from:
Customs duties: R4.18 billion
Dividend withholding tax: R3.94 billion
Excise duties: R2.15 billion
Personal income tax administrative penalties: R1.23 billion
Corporate income tax administrative penalties: R256 million
Together, VAT, PAYE, PIT and CIT account for the vast majority of debt recoveries, reflecting the relative size of these taxes within the broader revenue system.
Comparison With the Previous Financial Year
For context, SARS collected R95.02 billion from outstanding tax debt during the full 2024/25 financial year.
With R79.39 billion already recovered in the first ten months of 2025/26, debt recovery remains on track to deliver another strong performance by year-end, depending on collections during the remaining two months of the fiscal year.
What This Means for Tax Practitioners
The figures reinforce the increasing focus SARS places on recovering tax that is already due rather than introducing new taxes.
For taxpayers and practitioners, this trend highlights the importance of actively managing outstanding tax balances. Early engagement with SARS and arranging payment agreements where necessary can help avoid additional penalties, interest and enforcement action.
Debt collection will likely remain a central element of SARS’ compliance strategy as it continues to strengthen revenue administration and improve overall tax compliance.
