Tax compliance thresholds vary across organisations depending on their compliance approach and the nature of their business. At Konsise, we’ve observed that privately held companies and listed entities typically maintain a zero-tolerance approach towards tax debt with SARS. Even for small amounts like thirty Rand, these organisations prefer to clear their balance proactively, ensuring full compliance without waiting for SARS to request payment.

Some Konsise customers pursue a zero balance for peace of mind, while others focus on staying compliant.

In contrast, accounting firms and tax practitioners prioritise compliance over achieving a zero balance. Their goal is to ensure tax compliance for their clients (the taxpayers) without making unnecessary multiple payments for minor adjustments.

Konsise’s Configurable Compliance Threshold feature gives organisations full control over their tolerance level for outstanding tax debt owed to SARS, regardless of their size or structure.

The Tax Administration Act, 2011 (updated to January 5, 2023) outlines the legal framework for managing tax compliance. According to the Act:

• Section 256(3)(b)(iv): A taxpayer’s compliance status can only be marked as “compliant” if there is no outstanding tax debt, except when it falls below the threshold specified in Section 169(4) or a higher amount determined by SARS.
• Section 169(4): SARS is not required to recover tax debt if the amount is below R100 or any higher threshold determined by the Commissioner, but it must be carried forward in the taxpayer’s account.

Konsise’s flexibility in allowing customers to configure their tax compliance threshold is unique in the market. This feature ensures that each organisation can manage their tax compliance process based on its specific appetite for risk and operational preferences.

Using Konsise, organisations can manage their tax processes, maintain compliance, and tailor their approach to tax tolerance and settlements.