Understanding Tax Collections
South Africans who owe unpaid taxes could soon face SARS salary deductions, where money is taken directly from their paychecks. Employers are legally required to pay this deducted amount to the South African Revenue Service (SARS). On 27 October 2026, SARS announced changes to its existing collection process, m
aking it easier for employers to manage these mandatory deductions.
When Do SARS Salary Deductions Happen?
SARS can instruct employers to deduct money from an employee’s salary to recover unpaid taxes. However, taxpayers must generally receive a final demand for payment before further action is taken. If the debt remains unpaid and the legal requirements are met, SARS can instruct an employer to deduct a specified amount. Employers are legally required to follow valid instructions and transfer the money directly to the revenue service.
Tax expert Jashwin Baijoo from Tax Consulting South Africa warned that SARS is taking a tougher approach to recovering unpaid taxes. According to Baijoo, taxpayers owing as little as R5,000 are receiving final demand letters. This shows that collection efforts are not just limited to large corporate debts.
What Has Changed With the Collection Process?
SARS has revised its processing schedule to give employers more time to arrange SARS salary deductions before monthly salaries are finalised. The changes also aim to reduce repeated deduction instructions and cancellations. This update improves an existing collection process rather than introducing entirely new powers to recover unpaid taxes.
What Should South Africans Do if They Owe SARS?
Taxpayers who receive a final demand generally have 10 business days to address the outstanding debt. Those who are unable to pay the full amount immediately can contact SARS to discuss possible payment arrangements.
André Daniels, a tax dispute expert at Tax Consulting South Africa, advises taxpayers to request explanations from SARS when they believe an assessment is incorrect. He also cautions that challenging a tax assessment does not automatically stop SARS from collecting the debt. Taxpayers should regularly check their outstanding balances and respond promptly to payment notices to avoid further collection actions.