Outstanding Tax Debt? SARS’ Expedited Debt Compromise Ends 31 December 2025
“The South African Revenue Service is always ready to assist taxpayers to fulfil their legal obligations.” (SARS)
Acknowledging that taxpayers often find it difficult to settle tax debt due to financial challenges, SARS has launched an expedited debt compromise process to help eligible taxpayers settle outstanding tax debts swiftly and on more favourable terms.
The normal debt compromise process remains available to all taxpayers, and learnings from this expedited process will be used to enhance the broader system.
What is a debt compromise?
A compromise is a written agreement between SARS and a taxpayer in which SARS agrees to accept a reduced amount as full and final settlement of a tax debt.
Once the taxpayer pays the agreed amount and complies with the terms, SARS waives the balance of the debt. However, if the taxpayer defaults or fails to remain compliant, SARS can reinstate the full debt.
Expedited debt compromise eligibility criteria
- The process applies to non-disputed tax debts older than 12 months.
- You must be a client of a registered tax practitioner.
- Your tax returns must be up to date (even if payment is outstanding).
- The following exclusions apply: entities subject to specific legal processes (such as liquidations, estates, and business rescue cases), companies that are deregistered, cases subject to criminal investigation and audit, as well as cases within the write-off process, taxpayers who have had a compromise in the past three years, and taxpayers who have the means to pay but refuse to do so.
Submission requirements
Taxpayers applying for the expedited tax debt compromise process must provide comprehensive relevant supporting documentation with their applications, which must be submitted by 31 December 2025.
These documents include:
- Latest Annual Financial Statements (not older than one year)
- Last six months’ bank statements
- Cashflow forecast for 12 months
- List of Assets and Liabilities at market value
- Debtors’ age analysis
- Details of any connected persons
- Details of assets disposed of in the last three years
- Disclosure of future or contingent interests in assets
- Details of assets under the taxpayer’s control (including through trusts)
- Current and projected income for the next three years
- Application letter with clear motivation, including the proposed settlement offer amount, and the source of funds to pay the offered amount
- Collection Information Statement (CIS) request with reasons and proof to compromise the debt.
It is important that disclosures are accurate – if they aren’t SARS might not even consider the application.
SARS has committed to resolving qualifying applications within four weeks, using dedicated teams and enhanced workflow management.
Approved compromise settlements may be paid either in full (once-off payment), or in instalments as agreed by SARS.
Act now to avoid escalation
From 1 January 2026, SARS will escalate enforcement against taxpayers who remain non-compliant and have not applied for compromise. Such enforcement may include civil judgments against the taxpayer, writs of execution, collection of money from third parties such as banks, attachment of taxpayer assets, holding directors or members personally liable for the debt, sequestration or liquidation of the taxpayer, or preservation of assets against the debt. To support this intensified enforcement, SARS is engaging 260 legal collectors and 30 legal practitioners.
If you are struggling with long-overdue tax debt, this expedited tax debt compromise process may offer your best chance to finally resolve it – on favourable terms, nogal.
R&R for Better Business Performance? Here’s how…
“Sometimes the most productive thing you can do is relax.” (Mark Black)
By prioritising rest and relaxation (R&R) over the holidays, businesses can cultivate a healthier, more productive, and more resilient workforce – which ultimately leads to sustained high performance.
Here’s why R&R matters for your business performance… And how to help your team make the most of their December break.
6 ways R&R boosts business performance
- Prevents costly burnout. Chronic stress leads to burnout, which dramatically decreases performance and increases employee turnover. Regular rest maintains sustainable energy and enthusiasm, protecting your investment in talent.
- Unlocks creativity and innovation. Downtime allows your subconscious mind to process information and make new connections. Those breakthrough ideas rarely happen amid non-stop meetings and deadlines but rather emerge when your brain has space to wander.
- Sharpens decision-making. Fatigue impairs cognitive function. Rested leaders and employees analyse situations more clearly, weigh options more effectively, and make sound strategic decisions that move the business forward.
- Increases productivity and focus. Paradoxically, working non-stop decreases productivity. Taking breaks recharges the brain, improving concentration and efficiency. Research shows that the busier people are, the less creative they become.
- Enhances problem-solving. Stepping away from a challenge provides fresh perspective. You’ll often return with quicker, more effective solutions than if you’d powered through.
- Improves team communication. When people are tired or stressed, communication suffers. Rest enhances the ability to listen attentively, express ideas clearly, and avoid conflicts caused by fatigue-driven reactions.
How to maximise your team’s December leave
With the December holidays in a few days, now is the ideal time to encourage your team to make the most of the leave days.
A good starting point is to ensure your team knows that taking leave is essential: some people need permission to step away from their responsibilities.
Also encourage complete disconnection during leave days, reminding your team members that effective rest means genuinely disengaging from work and doing whatever their heart desires, be that hiking the Otter Trail, spending time with the family or embarking on a DIY project.
To reduce anxiety about taking time off and allow everyone to truly switch off when they’re on leave, you need to plan ahead. Work with your team now to establish clear out-of-office dates, handover protocols, and emergency contacts. And ensure projects are covered and clients are informed long before the holidays begin.
Finally, remember to lead by example – when managers and business owners take their own breaks and visibly disconnect, it gives everyone else permission to do the same.
Rest well, start well
Rest is not an indulgence, it’s a strategic investment in your business’ long-term success.
A well-rested team will return sharper, more creative, and ready to tackle challenges with renewed energy in 2026.
Your Tax Deadlines for November 2025
- 07 November – PAYE submissions and payments
- 25 November – VAT manual submissions and payments
- 27 November – Excise duty payments
- 28 November – VAT electronic submissions and payments, & CIT Provisional Tax payments where applicable.
