Outstanding Tax Debt? SARS’ Expedited Debt Compromise Ends 31 December 2025
SARS has introduced an expedited tax debt compromise process designed to help taxpayers settle long-outstanding tax debt more efficiently and on significantly more favourable terms.
This temporary relief measure is only available until 31 December 2025, and BGR is ready to assist your business in making the most of this opportunity.
“The South African Revenue Service is always ready to assist taxpayers to fulfil their legal obligations.” – SARS
Recognising the financial strain many individuals and businesses are facing, SARS has created a streamlined process that enables qualifying taxpayers to resolve historic tax debt while returning to full compliance. This new process functions alongside the existing debt compromise system, with insights gathered from the expedited stream expected to further strengthen the broader compromise framework.
What Is a SARS Debt Compromise?
A debt compromise is a formal written agreement between SARS and a taxpayer. SARS agrees to settle the outstanding tax obligation for a reduced amount, provided the taxpayer meets all conditions of the agreement.
Once paid and complied with, the remaining balance is written off.
If the taxpayer defaults or becomes non-compliant, SARS may reinstate the full original amount.
Eligibility Criteria for the Expedited Compromise
To qualify, taxpayers must meet SARS’ specific criteria:
Requirements
Tax debt must be older than 12 months and not under dispute.
You must be represented by a registered tax practitioner.
All tax returns must be fully submitted (even if amounts remain unpaid).
Exclusions
The expedited process is not available to:
Entities in liquidation, deceased estates, or business rescue.
Deregistered companies.
Cases under criminal investigation, audit, or write-off processes.
Taxpayers who have received a compromise in the last three years.
Taxpayers with the financial means to pay but who intentionally refuse to do so.
Documentation Required for Submission
Applications must include full and accurate disclosure supported by the following documents:
Latest Annual Financial Statements (not older than 1 year)
Last 6 months’ bank statements
12-month cashflow forecast
Asset & liability statement at market values
Debtors’ age analysis
Details of connected persons
Record of asset disposals within the past 3 years
Disclosure of future or contingent asset interests
Assets under your control (including through trusts)
Current and projected income for the next 3 years
Motivated application letter, proposed settlement offer, and funding source
Collection Information Statement (CIS) with supporting evidence
Accuracy is critical — SARS will not consider applications containing incomplete or inaccurate disclosures.
Processing & Payment Options
SARS has committed to processing qualifying applications within four weeks, using dedicated compromise teams and improved workflow systems.
Approved compromises can be settled either:
As a once-off payment, or
Through SARS-approved instalments
Why Act Now? Enforcement Intensifies After 31 December 2025
Taxpayers who remain non-compliant after the deadline may face serious enforcement actions from 1 January 2026, including:
Civil judgments
Writs of execution
Third-party appointments (banks, customers, employers)
Asset attachment
Personal liability for directors or members
Sequestration or liquidation
Preservation and seizure of assets
SARS has already engaged 260 legal collectors and 30 legal practitioners to support this ramp-up in collections.
Resolve Your Tax Debt, Favourably and Professionally
If you or your business is struggling with long-outstanding tax obligations, this expedited compromise may be the most cost-effective and realistic solution available.
BGR’s experienced tax team can:
Assess your eligibility
Prepare your full application
Ensure accurate disclosure
Negotiate the most favourable outcome
Manage all interactions with SARS on your behalf
Applications close 31 December 2025 — act now.
Only registered tax practitioners may submit these applications.