background image
13.5. Interest and Penalties

Delay or failure in the filing of tax returns, other required documents, or delay in payment of taxes attracts penalties and fines based on the amount of tax due. Such penalties and fines can be increased by the tax authorities during the final assessment. Generally, penalties for underpayment of tax range from 50% to 200% of the tax underpaid, in addition to the late interest of 2.5% per month.

If at the time of final assessment, the tax authorities determine that an additional amount is to be paid on account of the taxpayer’s fault, a penalty of up to 25% (reduced from 35% effective 19 August 2020) and compensatory interest at a rate of 1% per month or fraction of a month is imposed, in addition to the unpaid tax.