SARS admin penalty 2026 took effect on 1 May, expanding the late-submission penalty net to cover non-provisional taxpayers and deceased estate filings. Penalty bands now run from R250 to R16 000 a month per outstanding return. Executors, attorneys and late filers face direct exposure unless they act inside the dispute window.
Also read: How to publish a Section 29 notice in the Government Gazette
Who SARS will fine from 1 May 2026
The expansion covers any taxpayer who fails to submit an ITR12 by the relevant deadline. That now includes natural persons earning under R500 000 a year, deceased estate returns required by Section 25 of the Tax Administration Act, trust returns and provisional taxpayer returns. The penalty applies per outstanding return per month, capped at 35 months.
SARS admin penalty 2026: bands by taxable income
The amount climbs with assessed income.
- Taxable income below R250 000: R250 a month
- R250 001 to R500 000: R500 a month
- R500 001 to R1 million: R1 000 a month
- R1 million to R5 million: R2 000 a month
- R5 million to R10 million: R4 000 a month
- R10 million to R50 million: R8 000 a month
- Above R50 million: R16 000 a month
A return left unfiled for three years at the highest band attracts R576 000 in penalties before interest.
Deceased estate exposure for executors
Section 25 of the Tax Administration Act places the duty to file final and pre-death returns squarely on the executor. Where the deceased estate is large or unwound slowly, the executor risks a Section 95 estimated assessment plus the new monthly penalty. Executors handling Section 29 (J193) and Section 35(5) (J187) statutory advertisements through Legal Notice Publishing can keep the estate timeline tight and avoid a SARS filing default cascading into administrative penalties on top of the Master’s interest.
How to dispute a SARS admin penalty
The first step is a Request for Remission on eFiling, lodged within 30 business days of the penalty notice. Grounds must show the non-submission was beyond the taxpayer’s control, the return is now lodged or that exceptional circumstances applied. If SARS rejects the request, the next route is an Objection in Form NOO, then an Appeal in Form NOA. The 30-day clock is strict.
Frequently asked questions
What triggers a SARS admin penalty in 2026?
Any failure to file a personal income tax, provisional tax or deceased estate return by its statutory deadline triggers an automatic penalty under Chapter 15 of the Tax Administration Act. The penalty repeats every month the return stays unfiled, up to 35 months.
Are executors personally liable for the penalty?
Executors who fail to submit a deceased estate’s outstanding returns within a reasonable period can be held personally liable under Section 155 of the Tax Administration Act. Best practice is to obtain a SARS tax clearance early in the estate process and keep the auditor briefed on filing status.
Can a Request for Remission stop interest?
A successful remission removes the penalty in full, including interest accrued on that penalty. It does not remove interest on the underlying tax debt. That requires a separate compromise application.
How long does SARS take to decide a remission?
SARS targets 60 business days for an initial decision. Complex matters involving deceased estates or Section 95 assessments typically run longer. The penalty continues to accrue while the dispute is pending unless a payment arrangement is in place.
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Source: SARS, National Treasury
