SARS Administrative Penalties in 2026: Exactly How Much Will You Pay?
Complete guide to SARS administrative non-compliance penalties in 2026. See the full penalty table by income bracket and learn how to get penalties waived.
Calculate Your Penalty
Use our free calculator to find out your exact exposure.
What Is an Administrative Non-Compliance Penalty?
An administrative non-compliance (ANC) penalty is a fixed monthly penalty that SARS imposes when a taxpayer fails to submit a required tax return on time. It is governed by Section 210 of the Tax Administration Act (Act 28 of 2011).
Unlike other SARS penalties that are calculated as a percentage of tax owed, the ANC penalty is a flat amount determined by your taxable income in the preceding year of assessment. It is charged for every month (or part of a month) that the return remains outstanding.
How Much Is the ANC Penalty?
The monthly penalty amount is based on the taxpayer's assessed taxable income for the preceding year of assessment. The table below shows the current penalty brackets:
| Taxable Income (Prior Year) | Monthly Penalty |
|---|---|
| R0 – R250,000 | R250 |
| R250,001 – R500,000 | R500 |
| R500,001 – R1,000,000 | R1,000 |
| R1,000,001 – R5,000,000 | R2,000 |
| R5,000,001 – R10,000,000 | R4,000 |
| R10,000,001 – R50,000,000 | R8,000 |
| R50,000,001+ | R16,000 |
Which Returns Attract ANC Penalties?
ANC penalties can be imposed for the late submission of any required tax return, including:
- ITR12 — Individual income tax returns
- ITR14 — Company income tax returns
- VAT201 — VAT returns
- EMP201 — Monthly employer declarations
- EMP501 — Bi-annual employer reconciliation declarations
How Long Can the Penalty Accumulate?
The penalty is charged monthly for every month the return remains outstanding, up to a maximum of 35 months. This means the total penalty exposure can be significant — for example, a taxpayer in the R1M–R5M bracket who is 12 months late faces a penalty of R24,000 (R2,000 x 12 months).
The penalty is applied per return type. If you have multiple outstanding returns, each one attracts its own separate penalty.
Can ANC Penalties Be Reversed?
Yes. ANC penalties are issued as a notice of assessment and are specifically designed to be reversible. The most important thing you can do is file the outstanding return as soon as possible. Once the return is filed, the penalty stops accumulating.
You can also apply for remission of the penalty under Section 217 of the Tax Administration Act. SARS will consider factors such as whether this is a first offence, whether you had reasonable grounds for the late submission, and your overall compliance history.
What Should You Do If You Receive an ANC Penalty?
- File the outstanding return immediately — this is the single most important step to stop the penalty from growing.
- Check the penalty amount — use our ANC Penalty Calculator to verify the amount SARS has charged.
- Apply for remission — if you have reasonable grounds for the late submission, submit a formal remission request to SARS under Section 217.
- Consult a tax practitioner — if the penalty is substantial or you are unsure about your options, seek professional advice.
Related Guides
How to Reduce or Remove a SARS Penalty in 2026
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How to Request a SARS Penalty Waiver (With Template Letter)
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SARS Penalty for Not Filing a Tax Return: What Happens & How Much
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