First Time SARS Penalty? Here's What to Do (2026 Guide)

Why Did You Get a Penalty?

If this is your first SARS penalty, it's most likely for one of these reasons:

• Late or missing tax return — you didn't submit your ITR12 (individual), ITR14 (company), EMP201 (employer), or VAT201 (VAT vendor) by the deadline
• Late payment — you submitted your return but didn't pay the tax owing by the due date
• Auto-assessment not actioned — SARS auto-assessed you and you neither accepted nor disputed it within the deadline

The penalty is not discretionary — it is automatically imposed by SARS's systems when a deadline is missed. Even a single day late triggers the penalty.

Are First-Time Offenders Treated Differently?

Technically, the penalty amount is the same regardless of whether it's your first offence. However, first-time offenders have a significantly higher chance of getting the penalty waived through a remission request.

When SARS considers a remission request under Section 217, they look at:

• Compliance history — a clean record strongly supports your case
• Whether it's a first offence — SARS is more lenient with first-time non-compliance
• Reasonable grounds — illness, system issues, or genuine ignorance of the obligation
• Whether you've resolved the issue — filing the return or paying the tax before requesting remission dramatically improves your chances

Step-by-Step: What to Do Right Now

• Step 1: Log into SARS eFiling — check which returns are outstanding and review the penalty assessment notice.
• Step 2: File the outstanding return — do this immediately, even before requesting remission. SARS wants to see the underlying issue resolved first.
• Step 3: Pay any tax owing — if your return results in tax payable, pay it to stop interest from accruing.
• Step 4: Calculate the penalty — use our ANC Penalty Calculator or Late Payment Calculator to verify SARS's amount.
• Step 5: Request remission — submit a formal remission request through eFiling or in writing. Mention that this is a first offence and provide any supporting documentation.

Tips to Improve Your Remission Chances

• Resolve the non-compliance before submitting the remission request
• Be honest about the reason for the late submission — don't fabricate excuses
• Keep your request concise and factual
• If you have supporting documents (medical certificate, proof of travel, system error screenshot), attach them
• Reference that this is your first penalty and that you have otherwise been fully compliant

How to Prevent Future Penalties

• Set calendar reminders for all SARS deadlines (ITR12 usually October/November, provisional tax in August and February)
• Enable eFiling notifications so SARS can alert you when returns are issued
• Consider appointing a tax practitioner if your tax affairs are complex
• Check your eFiling profile at least once a quarter for any outstanding items