How to Pay Your SARS Payment Arrangement Instalments Using eFiling

Managing tax obligations can sometimes be challenging, especially when cash flow is tight. The South African Revenue Service (SARS) allows businesses and individuals to apply for a payment arrangement to settle outstanding tax debts over time. Payment arrangements may be necessary for various tax types, including:

• Value-Added Tax (VAT): If a company is struggling to pay its VAT liability on time, a payment arrangement allows for structured instalments instead of a lump sum.
• PAYE and UIF (EMP201): Employers who face temporary financial constraints may need to arrange a payment plan for employee tax deductions.
• Corporate and Personal Income Tax: Businesses and individuals may apply for payment arrangements to settle overdue tax liabilities over an extended period.
• Provisional Tax and Customs Duties: SARS also allows for instalment arrangements for other tax categories where compliance has been affected due to financial difficulties.

How to Request a Payment Arrangement

To apply for a payment arrangement with SARS, follow the steps outlined on their official website: How to make payment arrangements.

How to Get Your Letter Confirming Your Payment Arrangement

Once SARS has approved your payment arrangement, you can retrieve the confirmation letter from eFiling. Follow these steps:

1. Log in to your eFiling profile.
2. Navigate to SARS Correspondence (found in the blue left panel).
3. Click on Search Correspondence.
4. Locate the document titled “Instalment Payment Approval Letter”.
5. Click on the View button to access and download the letter.

The Instalment Payment Approval Letter contains all the details needed to make the scheduled payments, including the reference number and payment terms.

Making a Payment for Your Instalments on eFiling

Once you have your Instalment Payment Approval Letter, follow these steps to process your payment:

1. Navigate to Payments > Pay Now > Create Additional Payment.
2. On the payment page:
   • Select the Tax Type for which you are making the payment.
   • Input your company’s registered name (ensure correct capitalization).
   • Enter your Payment Reference Number (as indicated in the letter).
   • Input the instalment amount.
   • Choose between:
     • Save Payment (if you plan to process it later)
     • Make Payment (if you wish to pay immediately).
3. Select the bank account from which the payment will be processed.
4. Confirm the payment.
5. Log into your internet banking profile and release the payment according to your bank’s online payment process.

Good Housekeeping Practices

To ensure smooth compliance and avoid potential issues with SARS, keep the following in mind:

• Retain Proof of Payments: Always keep records of payment confirmations in case of audits or future disputes.
• Honour the Payment Dates: Missing a scheduled instalment may result in penalties and could disqualify you from using payment arrangements in the future.
• Process Payments in Advance: While eFiling payments usually process on the same day, submitting payments a few days before the deadline helps avoid last-minute issues.

Need Assistance?

Handling SARS tax matters can be complex, and missing payments can result in penalties or legal action. If you need professional assistance with SARS filing and other SARS-related services, contact Okuhle Advisory today to see how we can help you navigate your tax obligations efficiently.