How to Request a SARS Penalty Waiver (With Template Letter)

How to Request a SARS Penalty Waiver

A penalty waiver — formally called a "remission request" — is a formal application to SARS asking them to reduce or remove a penalty that has been imposed. This is done under Section 217 of the Tax Administration Act.

SARS has the discretion to remit penalties where the taxpayer can demonstrate reasonable grounds for the non-compliance. The request must be made in writing and should clearly explain why the penalty should be waived.

When Can You Request Remission?

You can request remission for most SARS penalties, including:

• Administrative non-compliance (ANC) penalties for late submission of returns
• Late payment penalties (the 10% once-off penalty)
• Late submission penalties for EMP201 and VAT201

Important: You cannot request remission of SARS interest. Interest is charged automatically and cannot be waived — the only way to stop interest accruing is to pay the outstanding tax. Understatement penalties have a different reduction mechanism through the VDP.

How to Submit Your Request

There are two main ways to submit a penalty remission request:

• Via SARS eFiling — log into your eFiling profile, navigate to the relevant assessment, and use the "Request for Remission" function.
• In writing to SARS — submit a formal letter to your local SARS branch or via the SARS Contact Centre.

What to Include in Your Request

A strong remission request should include:

• Your tax reference number and the specific penalty assessment number
• The type and amount of penalty you are requesting remission for
• A clear explanation of why the non-compliance occurred
• Evidence of any reasonable grounds (medical certificates, proof of system issues, etc.)
• Confirmation that the outstanding return has been filed or tax has been paid
• Your compliance history and any steps taken to prevent recurrence

What Happens After You Submit?

SARS will review your request and respond in writing. The outcome will be one of:

• Full remission — the penalty is waived entirely.
• Partial remission — the penalty is reduced but not fully waived.
• Rejection — the remission request is denied. You can then consider lodging a formal objection under Section 104.

Processing times vary, but you should expect a response within 21 business days. If you do not receive a response, follow up through the SARS Contact Centre or eFiling.