What SARS charges when a payment is late
Two separate amounts are added. The first is a percentage-based penalty, imposed under section 213 of the Tax Administration Act at the rate each tax Act sets. For employees' tax it is 10% under paragraph 6(1) of the Fourth Schedule, and SARS applies the same 10% to late UIF and SDL on the EMP201. For VAT, section 39 of the VAT Act sets it at 10%. For provisional tax, paragraph 27 of the Fourth Schedule charges 10% on a late first or second payment. The penalty is a once-off charge on the unpaid amount.
The second is interest at the prescribed rate, which keeps running until the tax is paid. Because the penalty is fixed at the moment you miss the deadline, paying a day late and a month late cost the same in penalty; only the interest grows.
Worked example: a late VAT payment
A monthly vendor owes R40,000 for its June 2026 tax period and files on eFiling, so payment is due on the last business day of July: Friday 31 July 2026. It pays on 15 September 2026, 46 days late. The penalty is 10% of R40,000, or R4,000.00. Interest runs from 1 August, the first day of the month after the due date, and is charged for each month or part month: August at 10.25% (R341.67) and September at 10.50% (R350.00), a total of R691.67. The vendor owes R44,691.67 in all.
For PAYE, an employer who pays R18,000 due on Monday 7 September 2026 on 20 October 2026 faces a R1,800.00 penalty and about R315.00 of interest for 2 months or part months.
The prescribed interest rate
SARS publishes the rate in Table 1 of its interest rate tables. The rate is linked to the rate set under section 80(1)(b) of the Public Finance Management Act, and for the relevant taxes a change only takes effect from the first day of the second month after the PFMA rate changes. The rates this calculator uses:
| From | To | Rate a year |
|---|---|---|
| 1 September 2026 | Until changed | 10.50% |
| 1 March 2026 | 31 August 2026 | 10.25% |
| 1 November 2025 | 28 February 2026 | 10.50% |
| 1 September 2025 | 31 October 2025 | 10.75% |
| 1 May 2025 | 31 August 2025 | 11.00% |
| 1 March 2025 | 30 April 2025 | 11.25% |
| 1 January 2025 | 28 February 2025 | 11.50% |
| 1 September 2023 | 31 December 2024 | 11.75% |
How the interest estimate is counted
For VAT the calculator follows the method in SARS's VAT 404 guide: interest at one twelfth of the annual rate for each month or part of a month, counted from the first day of the month after the month in which payment was due. A VAT payment made late but still within the due month therefore attracts the penalty but no interest. For PAYE and provisional tax the estimate charges one twelfth of the rate for each month or part month after the due date. SARS's own systems may count days slightly differently for these taxes, so treat the interest as a close estimate and rely on your statement of account for the final figure.
Due dates the penalty is measured from
Employees' tax, UIF and SDL must reach SARS within seven days after the end of the month in which they were deducted. If the seventh falls on a Saturday, Sunday or public holiday, the deadline moves to the last business day before it, not after. VAT returns and payments filed on eFiling are due by the last business day of the month after the tax period ends. Provisional tax dates depend on your year end, and the SARS deadline checker sets them all out. To count business days around a deadline, use the working days calculator.
Penalties for returns that are not submitted
A missing return attracts a fixed amount penalty under section 211, set by your assessed loss or taxable income for the preceding year. SARS currently imposes it on individuals with one or more income tax returns outstanding, on companies that have not filed within 21 business days of a final demand, and, since 2026, on trusts with outstanding ITR12T returns. The penalty recurs every month the return is outstanding, up to a maximum of 35 months.
| Assessed loss or taxable income | Penalty a month | After 35 months |
|---|---|---|
| Assessed loss | R250 | R8,750 |
| R0 to R250,000 | R250 | R8,750 |
| R250,001 to R500,000 | R500 | R17,500 |
| R500,001 to R1,000,000 | R1,000 | R35,000 |
| R1,000,001 to R5,000,000 | R2,000 | R70,000 |
| R5,000,001 to R10,000,000 | R4,000 | R140,000 |
| R10,000,001 to R50,000,000 | R8,000 | R280,000 |
| Above R50,000,000 | R16,000 | R560,000 |
Someone who earned R420,000 of taxable income last year and leaves a return outstanding for 4 months owes R2,000 (R500 a month). Left for the full 35 months, the same return would cost R17,500.
Asking SARS to remit a penalty
Submit a Request for Remission (RFR) on eFiling or at a SARS branch, giving the circumstances, each period and amount. For the 10% late payment penalty SARS may remit if the non-compliance is a first incidence or involves less than R2,000, you had reasonable grounds, and you have since paid. The late payment penalty can also be remitted in exceptional circumstances that made paying on time impossible, including a natural or human-made disaster, serious illness or accident, serious financial hardship, or an error by SARS. Payment of a penalty is suspended from the day SARS receives the request until 21 business days after it tells you its decision. If SARS refuses, you can object to that decision.
General information on SARS rules, not tax advice for your situation.
Frequently asked questions
How much is the SARS penalty for paying late?
10% of the tax that was not paid on time, charged once, for PAYE, UIF and SDL on the EMP201, for VAT, and for the first and second provisional tax payments. Interest at the prescribed rate is charged on top of the penalty for as long as the tax stays unpaid.
What interest rate does SARS charge on late payments?
10.50% a year from 1 September 2026, according to SARS's Table 1 of interest rates on outstanding taxes. The rate follows the rate set under the Public Finance Management Act, and SARS applies a change from the first day of the second month after that rate moves.
Is the full penalty charged if I pay one day late?
Yes. The percentage penalty is not scaled by the number of days. A PAYE payment of R25,000 made one day after the due date attracts a penalty of R2,500.00, plus R218.75 of interest on this calculator's estimate.
What is the penalty for not submitting a tax return?
A fixed amount every month the return is outstanding, from R250 to R16,000 depending on your taxable income for the previous year, for up to 35 months. Someone with taxable income of R420,000 pays R500 a month, which reaches R17,500 if the return stays outstanding for the full 35 months.
Can SARS cancel a late payment penalty?
It can remit the 10% penalty if three things are true: it is a first incidence or the amount involved is under R2,000, you had reasonable grounds for paying late, and you have since paid. A first incidence means no other penalty in the previous 36 months. Submit a request for remission on eFiling or at a branch.
Can I object to interest charged on late VAT?
No. According to SARS, a request for remission is the only remedy for disputing interest on late VAT, and you cannot object to SARS refusing that request. Interest is only remitted where the late payment was caused by circumstances beyond your control, such as a failure in the banking system, and you must pay the tax first.
Does paying the penalty stop the late-return penalty?
No. A fixed amount penalty recurs each month until the return itself is submitted. Paying the penalty clears the debt for the months already charged, but only filing the outstanding return stops the next month being added.