How are SARS penalties and interest calculated?

Last Updated on September 21, 2023 by ufiling

SARS penalties and interest in South Africa are typically imposed when taxpayers fail to comply with their tax obligations. The calculation of penalties and interest varies depending on the specific circumstances and the type of non-compliance involved. However, I can provide you with a general overview of how these calculations are typically made.

  1. Penalties: SARS (South African Revenue Service) imposes penalties for various types of non-compliance, such as late submission or non-submission of tax returns, late payment of taxes, underestimation of taxes, or deliberate tax evasion. The penalties are calculated as a percentage of the tax liability or the amount outstanding. The exact percentage applied depends on the type of non-compliance and the number of previous offenses.

For example, if you fail to submit your tax return on time, SARS may impose a penalty of 10% of the tax liability for the first offense. If it’s a subsequent offense, the penalty percentage can increase up to a maximum of 200% of the tax liability.

  1. Interest: SARS also charges interest on outstanding tax amounts. The interest is calculated on a daily basis and accrues from the due date of the tax liability until the date of payment. The interest rate is determined by SARS and is typically based on the South African Reserve Bank’s repo rate.

To calculate the interest, SARS uses the formula: Interest = Tax Amount * Interest Rate * Number of Days / 365

For example, if you have an outstanding tax amount of R10,000 and the interest rate is 10%, and you’re 30 days late in making the payment, the interest calculation would be: Interest = 10,000 * 0.10 * 30 / 365 = R82.19

It’s important to note that SARS has the authority to waive or reduce penalties and interest in certain circumstances, such as when the taxpayer can provide a valid reason for the non-compliance or demonstrates a willingness to rectify the situation.

The specific calculations for penalties and interest may vary depending on the situation and the discretion of SARS. It’s always recommended to consult with a tax professional or contact SARS directly for accurate and up-to-date information regarding penalties and interest calculations.

Top 15 Online Courses and Degrees to improve your employability

Technology and Computer Science Online Courses and Online degrees:

– Computer Science 101 Online Course from Stanford University through edX is a beginner-friendly course that introduces the core concepts of Computer Science, available for free with an option for certification for a fee.
– Programming for Everybody Online degree — Getting Started with Python** by the University of Michigan on Coursera is intended as an entry-level coding class, freely accessible with an optional paid certificate.

Web Development: Online Courses and Online degrees

– Introduction to HTML offered by Codecademy covers HTML basics for free, with advanced options available through paid upgrades.
– Dash by General Assembly is a free course that teaches HTML, CSS, and JavaScript through hands-on project learning.

AI and Data Science: Online Courses and Online degrees

Introduction to Big Data Online Courses provided by the University of San Diego via Coursera delves into the fundamentals of big data, available at no cost with a certificate available for an extra charge.
Machine Learning Online Degrees by Stanford University on Coursera is a broad course on machine learning, data mining, and statistical pattern recognition, free to access with optional certification.

Business and Management: Online Courses and Online degrees

The PG Diploma in Data Science Online Course from IIIT-B focuses on a variety of programming languages and tools and is developed in partnership with leading industry players.
– A Business Analytics Certification Online degree draws attention especially for those targeting analyst and managerial roles, covering essential tools for analytics and data visualization.

Cloud Computing: Online Courses and Online degrees

– The Advanced Certification in Cloud Computing is targeted at engineering graduates looking to fill roles such as Cloud Developer or Cloud Architect.

Project Management and Software Development: Online Courses and Online degrees

Online degrees in Project Management from leading universities incorporate essential management concepts and business communication.
– The MSc. in Computer Science Online degree from Liverpool John Moores University provides the same level of quality and exposure as on-campus degrees through an 18-month online format.

Cybersecurity: Online Courses and Online degrees

The Advanced Certificate Programme in Cyber Security by upGrad and IIIT-B offers an in-depth learning experience over 12 months, combining content hours, projects, and live sessions.

Platforms Offering Diverse Learning Opportunities: Online Courses and Online degrees

FutureLearn offers accelerated courses, microcredentials, and professional certificates across multiple fields with various payment options including subscriptions.
Coursera partners with over 275 universities and organizations worldwide, offering a wide range of degrees and professional certificates.
Udacity specializes in IT and technology courses, with nanodegrees and programs designed in collaboration with industry leaders.
– Codecademy focuses on coding and programming, providing free learning opportunities in various coding languages with additional professional development programs.

These courses and degrees are designed to equip individuals with in-demand skills across various sectors, enhancing employability and providing valuable certifications. Whether interested in technology, data science, business, or other areas, these online resources offer flexible and comprehensive ways to learn and advance in your career.