Waiving Tax Penalties and Interest: Expert Legal Assistance in South Sudan

Taxation Law

Elario Adam CholongThursday, April 17, 20253 mins read

Timely payment of taxes is a key responsibility for taxpayers in South Sudan. However, delays or errors often result in tax penalties, interest, and additional charges. The Taxation Act, 2009 (R.E. 2021), as amended, allows for the waiver or reduction of these charges under specific conditions. At Legalline Law Chambers, we’re here to help you navigate these provisions and minimize your financial burden.

Understanding Tax Penalties, Interest, and Charges

The Taxation Act lays out the rules for penalties, interest, and charges on unpaid taxes. Here’s what you need to know:

Interest on Late Payments (Section 36)
Interest accrues on unpaid taxes from the due date until payment. The interest rate is set at 120% of the prime commercial rate in South Sudan. Interest can be waived if you prove the tax was not due.

Penalties for Non-Payment (Section 37)
A 5% penalty applies automatically after the fourth month of non-payment. The Commissioner General can waive up to 75% of the penalty due to verifiable hardship or to encourage voluntary compliance.

Additional Charges for Late Filing (Section 38)
A 5% charge applies monthly for late tax returns, up to 25% of the tax due. Information return failures may lead to a 20% penalty or a SSP 250 monthly fee. These charges can be reduced by up to 75%.

Administrative Penalties for Non-Registration (Section 38(4))
Failure to register within 30 days results in a SSP 500 penalty per month, plus possible criminal penalties.

Failure to Withhold Tax (Section 39)
If you fail to withhold tax as required, you’ll be liable for the unpaid tax, penalties, interest, and lose the right to deduct the payment.

How Legalline Law Chambers Can Help

The Commissioner General of the South Sudan Revenue Authority (SSRA) holds the authority to waive or reduce penalties and interest. At Legalline Law Chambers, we assist clients by:

Preparing Waiver Applications: We help you submit strong applications for penalty and interest reduction.
Supporting Documentation: We gather necessary evidence to support your case.
Negotiating with the SSRA: Our team negotiates with tax authorities to secure the best possible outcome.
Representing You in Disputes: We represent clients during audits, disputes, and hearings to ensure fairness.

How Payments Are Applied

When you make a payment, the SSRA applies it in the following order:

Interest

Penalties

Taxes

Other Charges

However, the Commissioner General can treat payments as part of your tax liability if penalties and interest exceed the tax owed, provided the designation doesn’t exceed 90% of the tax owed.

Why Choose Legalline Law Chambers?

At Legalline Law Chambers, we provide expert legal guidance to help you reduce or eliminate tax penalties, interest, and charges. We understand the complexities of South Sudan’s tax laws and are committed to assisting you in navigating the waiver process effectively.

Contact Us for Expert Legal Assistance

If you’re dealing with tax penalties or interest, Legalline Law Chambers is here to help. Let us guide you through the process of seeking relief and ensure you only pay what you owe.