SARS Debt Compromise Assistance
When a business genuinely cannot settle its full tax debt, a compromise may allow SARS to accept a reduced amount. We help you understand whether it is realistic — and apply properly if it is.
What a compromise is
A compromise is an exception — not a shortcut.
A debt compromise is an agreement in which SARS accepts less than the full tax debt, usually because recovering the whole amount is unlikely and a compromise is a better outcome for the fiscus.
SARS only agrees to a compromise in limited circumstances and expects full, honest disclosure of your financial position. A weak or incomplete application is likely to be declined — and can delay other options.
Before applying, we check whether a payment arrangement or an objection would be a better route for your business.
Be realistic
The right route
first time.
- Who it may suit
- Businesses whose debt clearly exceeds what they can realistically pay, now or over time.
- What SARS expects
- Complete disclosure of assets, liabilities, income and the reasons for the debt.
- Your first step
- An honest assessment of whether a compromise is likely to be considered.
How it works
How we prepare a compromise application
A compromise application stands or falls on its detail. We take a careful, step-by-step approach.
Contact Us-
Assess your position
We review the debt, your assets, liabilities and cash flow to see whether a compromise is realistic.
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Compare the alternatives
We weigh a compromise against a payment arrangement or an objection and agree the best route with you.
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Build the application
We gather supporting documents and prepare a clear, complete application and financial disclosure.
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Submit and engage
We submit the application and handle SARS’s questions and requests for further information.
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Meet the conditions
If SARS agrees, we help you understand and keep to the conditions of the compromise.
When it may be considered
Situations where a compromise may be explored
A compromise is not right for everyone. These are the situations where it is worth a closer look.
Book a ConsultationThe debt is far larger than you can pay
Even a long payment arrangement would not realistically clear the balance.
The business has few realisable assets
Selling assets would not come close to covering the debt.
Recovery would harm the business
Full recovery would likely end the business, leaving SARS with less.
You can commit to future compliance
You are ready to keep returns and payments up to date going forward.
Requirements
What a strong application needs
SARS expects a full and accurate picture of your finances. These are the documents we usually start with.
- SARS statement of account
The latest statement showing the debt, interest and penalties.
- Financial statements
Recent annual financial statements and current management accounts.
- Assets and liabilities
A complete list of what the business owns and owes, with supporting values.
- Cash-flow projections
Realistic projections showing what the business can and cannot pay.
- Reasons for the debt
A clear explanation of how the debt arose and why it cannot be paid in full.
- Business details
Registration documents and your SARS eFiling profile access.
Don’t have everything? Bring what you have — we will tell you what is missing.
Ask us a questionNot sure a compromise is realistic?
We will give you an honest view — including when a different route is better.
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FAQ
Debt compromise questions
Will SARS always accept a compromise?
No. SARS considers each application on its merits and only agrees in limited circumstances. A complete, well-supported application gives you the best chance of a fair decision.
How is a compromise different from a payment arrangement?
A payment arrangement spreads the full debt over time. A compromise asks SARS to accept less than the full amount. Our guide compares the two.
Do I have to disclose all my assets?
Yes. Full and honest disclosure of your financial position is essential. Incomplete or inaccurate information can lead to the application being declined.
Can SARS withdraw a compromise later?
A compromise usually comes with conditions. If they are not met, or if information provided proves to be incorrect, SARS may be entitled to reverse it.
Still have questions? We’re happy to help.
Contact UsMore detail in our guide: SARS debt compromise explained
Find out if a compromise is realistic for you
Book a confidential consultation and get an honest view of your options.