Short answer
A SARS payment arrangement is an agreement to pay a tax debt in instalments, or to defer payment, where paying immediately would cause hardship. You apply with information showing what you can afford; if SARS agrees, you must keep up the instalments and stay compliant for the arrangement to hold.
What a payment arrangement is
An instalment payment arrangement allows a taxpayer to settle an outstanding tax debt over an agreed period. It does not reduce the debt, and interest generally continues to run on the outstanding balance.
What SARS considers
- Whether you genuinely cannot pay the full amount immediately.
- Your financial position, including income, expenses and assets.
- Your compliance history and whether returns are up to date.
- Whether the proposed instalments are realistic.
How to apply
- Obtain your latest statement of account and confirm the debt.
- File any outstanding returns.
- Prepare financial information showing what you can afford.
- Submit the request with a clear, realistic proposal.
- Respond promptly to any questions from SARS.
Keeping the arrangement on track
An arrangement can be cancelled if instalments are missed or new obligations are not met. To keep it in place:
- Pay every instalment on time.
- Submit and pay new returns as they fall due.
- Speak to an advisor early if your cash flow changes.
If you think you may miss an instalment, raise it before it happens — not after.