I owe SARS money and cannot pay in full
Owing SARS money you cannot settle at once is common, and there are defined routes that may help. The right next step depends on whether the amount is correct, whether you can pay it over time, or whether full payment looks genuinely impossible. This page sets out what to check first - calmly, and without ignoring the demand.
Start by verifying the amount, not by choosing a payment option
Before requesting instalments or a compromise, confirm whether the figure SARS says you owe is actually correct. If it rests on an assessment you have not seen or disagree with, paying it - or arranging to pay it - may be premature. The statement of account is the official record to check first.
Three different starting points
The route that fits depends on whether this is a cashflow problem, a deeper inability to pay, or a question about whether the amount is right at all.
Temporary cashflow constraint
The amount is broadly accepted, but you cannot settle it in one sum right now. You have income or assets that could service the debt over time, just not today.
A structured payment plan - paying the full debt in agreed instalments - is typically the first route to explore.
Deeper inability to pay
Even over time, paying the full amount looks genuinely impossible given your overall financial position. The debt may be old, large relative to means, or tied to a closed period.
A compromise - asking SARS to accept a lesser amount in settlement - may warrant investigation. Approval is discretionary and never guaranteed.
The amount may be wrong
You are not sure the figure is correct. It may rest on an estimated assessment for an unfiled return, an adjustment you disagree with, or interest and penalties that should not apply.
The priority shifts to verifying the amount first - correcting or disputing the underlying assessment before arranging any payment.
Evidence to gather before deciding
These details are gathered after a written scope is agreed - not with the initial enquiry. You do not need all of them to begin.
Two different routes, one key difference
A payment plan pays the full debt over time. A compromise asks SARS to accept less. They are not interchangeable, and which one applies depends on your documented financial position - not on preference.
| Route | What it does | When it fits |
|---|---|---|
Payment plan | Pays the full debt in agreed instalments over time. The amount is not reduced. | When the amount is accepted and you can service it over time, just not in one sum. |
Compromise | Asks SARS to accept a lesser amount in full settlement. Approval is discretionary and never guaranteed. | When paying the full amount looks genuinely impossible, even over time, based on your overall position. |
What not to do
- Do not ignore the demand. An unpaid, unaddressed debt can move into active collection.
- Do not move or hide assets to avoid collection. That is not a remedy and creates its own serious consequences.
- Do not pay a disputed amount before verifying it, if you believe the figure is wrong.
- Do not assume a payment plan or compromise is automatic - both require an application and SARS approval.
Questions about not being able to pay
Where should I start?
Start with the statement of account - the official SARS record of what it says is owed. Confirm the amount, the tax type and the period, and whether the debt rests on an assessment you have not seen or disagree with. Only once the figure is clear does it make sense to choose between a payment plan and a compromise. If you cannot locate the statement, the assessment will explain what to look for.
Should I request instalments or a compromise?
That depends on your documented financial position, not on preference. A payment plan pays the full debt over time and suits a cashflow constraint you can service. A compromise asks SARS to accept less and suits a deeper inability to pay, but approval is discretionary and never guaranteed. The assessment helps establish which route realistically applies before either is pursued.
What if the debt is wrong?
Then the priority is verifying and, if needed, disputing the underlying assessment - not arranging to pay a figure you do not accept. If the debt rests on an estimated assessment for an unfiled return, filing the return may change the figure. If you disagree with an adjustment or finding, a formal objection may be the route. Paying a disputed amount before checking it can be premature.
Confirm the amount before choosing a route
A confidential assessment checks whether the figure is correct and whether a payment plan or a compromise realistically applies. No documents or passwords are required to begin.