What Is a SARS Payment Arrangement?
A SARS payment arrangement is an agreement to settle outstanding tax debt in instalments over an agreed period, rather than paying it all at once.
Payment arrangements are provided for under Sections 167 and 168 of the Tax Administration Act 28 of 2011 (TAA). Approval is discretionary and depends on full disclosure and supporting evidence of your financial position.
Why Choose a Payment Arrangement?
- Reduce immediate cash strain by spreading payments over time.
- Stay compliant while avoiding harsher collection measures.
- Protect business continuity while you stabilise cash flow.
A payment arrangement gives you time to pay; it does not write off the debt or automatically stop interest. If full repayment is not realistic, we can assess whether a SARS tax debt compromise may be appropriate.
SARS Payment Arrangement Requirements and Documents
We first assess your situation and explain which financial information is needed for your case. For a business, supporting records may include:
- Bank statements (last 3 months)
- A cash-flow forecast covering the next 12 months
- Financial statements for the previous three years, where applicable
- Up-to-date management accounts
- Asset register (with disposals over the last 3 years)
- Detailed debtors and creditors analyses
We review the records you already have and help prepare the accounts, forecasts and supporting information needed for your application.
Understanding SARS Debt Escalation
Outstanding tax debt can lead to a SARS final demand and further collection action. If you have received a notice, tell us its deadline when you enquire. Depending on the circumstances and applicable legal requirements, SARS may pursue:
- Recovery from funds held in a bank account through a third-party appointment.
- Third-party appointments requiring customers or other parties to pay funds to SARS.
- Civil judgments and execution against assets.
Be proactive, not reactive. Engage us early to shape a practical solution. An enquiry or payment arrangement application does not, by itself, stop collection action.
What If You Default on a Payment Arrangement?
Missing payments or failing to meet the conditions can put an approved arrangement at risk. Possible consequences include:
- Termination of the arrangement.
- Recovery of the outstanding balance rather than continued payment on the agreed schedule.
- Further enforcement, including third-party appointments, asset attachment or civil judgments.
- Difficulty securing another arrangement: a previous default must be properly explained, and a further request may be declined.
We help propose realistic schedules based on your cash flow. You must also keep up with current tax obligations. Any ongoing compliance monitoring or reminders form part of the services agreed with you.
SARS Payment Plan Assistance for Businesses
BONMAS CONSULTING assists businesses with SARS payment arrangements for VAT, PAYE and income-tax debt. We assess your outstanding balances, repayment capacity and any outstanding returns, then help prepare and motivate a payment plan based on your circumstances.
Our Process
- Assessment: We discuss your situation, assess your tax debt and repayment capacity, and advise you on the options and information needed.
- Documentation: We identify what your case requires and help prepare financial statements, forecasts and management accounts.
- Proposal: Build a feasible instalment plan aligned to your cash flow.
- Submission & Engagement: Lodge a submission with SARS and handle queries.
- Aftercare: We explain the approved repayment obligations and any ongoing support included in your engagement.
FAQs: SARS Payment Arrangements
Who qualifies for a payment arrangement?
SARS assesses qualifying circumstances, including financial difficulties and the prospects of repayment. Outstanding returns and reconciliations must be submitted, and security may be required. We assess your financial position and help prepare a supported proposal.
How long can I pay over?
The repayment period depends on your circumstances and the terms SARS accepts. We help model a realistic instalment schedule supported by your cash flow. A particular repayment period or approval is not guaranteed.
Can I include penalties and interest?
A payment arrangement must cover the outstanding debt, including applicable penalties and interest. Interest may continue while the debt remains outstanding. Separate relief, such as remission, may be assessed case by case.
Can you help with VAT, PAYE or income-tax debt?
We can assess payment arrangement assistance for these tax types, including the balances, outstanding submissions and financial information required. The application route depends on your circumstances.
What if SARS already issued a letter of demand?
Act promptly and share the notice and deadline with us. We can assess whether a payment arrangement is suitable and assist with the appropriate next steps. An application alone does not stop recovery action.
What does payment arrangement assistance cost?
Fees depend on the assessment, financial preparation and application support needed. We confirm the scope and fees before starting.
Ready to Regain Control?
Take the next step towards a realistic SARS payment arrangement. BONMAS CONSULTING helps you prepare the financial information, motivate repayment terms and engage with SARS about your application.
Discuss Your SARS Payment Arrangement
Tell us about your tax debt, the questions you need answered and any SARS notices or deadlines. Our tax team will assess your situation and advise you on the options and next steps.
