How to Use SARS Penalty Calculator (2026) - Complete Guide

Understanding potential SARS penalties and interest helps you plan for tax compliance and avoid unnecessary costs. Our free SARS Penalty Calculator helps you estimate penalties and interest for late payments, non-submission, and other tax violations. This comprehensive guide explains how to use the calculator effectively.

Understanding SARS Penalties

SARS imposes penalties for:

• Late Payment: 10% penalty on outstanding amount
• Non-Submission: 20% penalty for not submitting returns
• Understatement: 50% penalty for understating tax

Interest is calculated at Prime rate + 5%, compounded monthly.

How to Use the Calculator

Step 1: Access the Calculator

Navigate to our SARS Penalty Calculator tool.

Step 2: Enter Details

• Select tax type (income tax, VAT, PAYE, etc.)
• Enter amount outstanding
• Select penalty type
• Enter days late

Step 3: Calculate

Click "Calculate Penalties" to see total penalties and interest.

Important Notes

• Penalty rates: Late payment (10%), Non-submission (20%), Understatement (50%)
• Interest: Prime rate + 5%, compounded monthly
• This calculator provides estimates only
• Always verify with SARS for official calculations

For detailed information, use our SARS Penalty Calculator tool and consult with SARS for official penalty calculations.