SARS Payment Plan for Penalties: How to Apply for Instalment Arrangements

Can You Pay SARS Penalties in Instalments?

Yes. If you cannot pay your SARS penalty (or tax debt) in full, you can apply for a deferred payment arrangement under Section 167 of the Tax Administration Act. This allows you to pay the amount in monthly instalments over an agreed period.

A payment arrangement does not reduce the penalty amount — it simply spreads the payment over time. Interest continues to accrue on the outstanding balance during the arrangement.

How to Apply for a Payment Arrangement

• Via SARS eFiling — navigate to Payments > Payment Arrangement and follow the prompts
• At a SARS branch — visit with your ID, tax reference number, and proof of income/financial position
• Via the SARS Contact Centre — call 0800 00 7277 to discuss your options

What SARS Requires

When applying for a payment arrangement, you will need to provide:

• Your tax reference number and details of the outstanding amount
• Proof that you cannot pay in full (bank statements, financial statements, proof of expenses)
• A proposed payment plan — how much you can pay per month and over what period
• All tax returns must be filed and up to date — SARS will not grant a payment arrangement if you have outstanding returns

Important Rules for Payment Arrangements

Payment Plan vs Penalty Remission

These are two different remedies that can be used together:

• Penalty remission (Section 217) reduces or removes the penalty amount. Apply for this first.
• Payment arrangement (Section 167) spreads the remaining balance over time. Use this for whatever amount remains after remission.

The optimal strategy is to first request penalty remission to reduce the total amount, then apply for a payment arrangement on the remaining balance if you still cannot pay in full. Use our Interest Calculator to see how much additional interest will accrue during your proposed payment period.