SARS Expedited Tax-Debt Compromise Process
Navigate Tax Debt with Strategy – Not Stress
SARS Commits to Expedited Tax-Debt Compromise Process
The South African Revenue Service (SARS) remains committed to assisting taxpayers in meeting their legal obligations. We understand that some taxpayers may struggle to settle outstanding tax debt due to financial constraints. To address this, SARS utilises various mechanisms to support debt recovery.
Recently, SARS engaged with Recognised Controlling Bodies (RCBs) to explore additional ways to assist taxpayers in resolving their tax liabilities. During these discussions, the Debt Compromise provision outlined in Part D of the Tax Administration Act was reviewed as a potential solution for qualifying cases.
As a result, SARS and the RCBs have agreed to introduce an Expedited Tax Debt Process. This initiative aims to accelerate debt resolution while remaining fully compliant with the provisions of the Tax Administration Act. Please note that the standard debt compromise process will continue to be available to all taxpayers.
Insights gained from the expedited process will be used to enhance the overall debt compromise programme for the benefit of all taxpayers. A dedicated single point of entry for applications will be made available from Monday, 13 October 2025. Initially, this streamlined process will be accessible through RCBs; however, SARS may expand availability to all taxpayers based on the outcomes of the rollout.
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Contact CTV & Associates today for a confidential consultation and assistance with SARS Expedited Tax-Debt Compromise Process.
Expedited Compromise Criteria
- Some of the taxpayers have been paying their debts over time however the payments made have not been able to fully cover the debt due.
- SARS is considering a process that will assist these category of taxpayer to become compliant – in line with SARS strategic objective. Make it easy for taxpayers to comply with their tax obligations.
- Criteria being considered:
- Debts older than 12 month.
- Debt not in Dispute – unless dispute withdrawn/appetite to settle.
- No Estates- Insolvent/deceased.
- No Deregistration at final stages with CIPC.
- No Fraud in the origin of the debt.
- No Suspension of debt in progress.
- No Temporary Write Off involving Compromise/Business Rescue.
Frequently Asked Questions
Q: What is the Expedited Tax-Debt Compromise Process?
A: The Expedited Tax-Debt Compromise Process is a streamlined initiative introduced by SARS to help eligible taxpayers resolve outstanding tax debt more efficiently. It is implemented in collaboration with Recognised Controlling Bodies (RCBs) and operates within the framework of the Tax Administration Act.
Q: Who can apply for the expedited process?
A: Initially, the process is available to taxpayers who submit applications through their Recognised Controlling Bodies (RCBs). SARS may extend access to all taxpayers depending on the success of the initial rollout.
Q: What is the objective of this process?
A: The goal is to accelerate the resolution of outstanding tax debt while still ensuring compliance with legal provisions. It provides a faster, more structured approach to debt compromise for qualifying taxpayers facing financial difficulties.
Q: How does this differ from the normal Debt Compromise process?
A: The expedited process is designed to improve turnaround times and efficiency. However, the standard Debt Compromise process remains available to all taxpayers who meet the qualifying criteria.
Q: When does the expedited process become available?
A: Applications for the Expedited Tax-Debt Compromise Process can be submitted from Monday, 13 October 2025.
Q: What types of tax debt can be considered under this process?
A: Tax debt eligible for compromise includes outstanding amounts where the taxpayer is unable to fully settle their liabilities due to genuine financial hardship. SARS will assess each case based on supporting financial and compliance information.
Q: Will taxpayers still need to be tax-compliant to apply?
A: Yes. To be considered for a compromise, taxpayers must demonstrate current compliance, including the submission of all required returns and supporting documents.
Q: What documents will be required for the application?
A: Applicants will need to provide detailed financial information and relevant supporting documentation. Requirements may vary from case to case and will be guided by SARS and the taxpayer’s RCB.
Q: Is approval guaranteed once an application is submitted?
A: No. SARS will evaluate each application in line with the Tax Administration Act. Approval is subject to meeting the required criteria and providing evidence of financial incapacity to settle the full debt.
Q: Will this process affect future compliance or tax obligations?
A: While the compromise may reduce the tax debt owed, taxpayers must remain fully compliant with all future tax obligations. Failure to do so may affect future eligibility for relief measures.
Q: How will taxpayers benefit from this expedited process?
A: Taxpayers can expect quicker decision-making, improved guidance from their RCBs, and better opportunities to settle debts in a manageable and legally supported manner.
Tax Debt Assessment & Strategy
Negotiation With SARS
Payment Arrangements & Deferred Settlements
Tax Compliance Restoration
