Article by: Stamford Hill Accountant: MLONDI SHANDU
Understand the Risks and Maximize Your Tax Refund
What is an auto-assessment?
An auto-assessment is an automatic tax assessment issued by the South African Revenue Service (SARS) for certain taxpayers. SARS generates it using data from third parties, such as employers, financial institutions, medical schemes, and retirement annuity fund administrators, without requiring input from the taxpayer. This results in a pre-filled tax assessment based on the information SARS has on file.
Why has SARS introduced this process?
SARS introduced auto-assessments in 2019 to streamline the tax filing process and reduce the need for in-person submissions at SARS branches. The process expanded during the COVID-19 pandemic to support physical distancing and has since become a core part of SARS’s digital tax system, making filing faster and more efficient for eligible taxpayers.
How will I know if I have been auto assessed?
SARS will notify you via SMS or email if you’ve been selected for an auto-assessment. For the 2025 tax season, these notifications are typically sent between 7 July and 20 July 2025. Check your eFiling profile or the SARS MobiApp to view your assessment details.
Is the deadline for auto assessments the same as the normal tax season?
No, the deadline for correcting an auto-assessment differs from the normal tax season. You have 40 working days from the date of your auto-assessment notice to file a corrected tax return if you disagree with the assessment. For example, an auto-assessment issued on 7 July 2025 would have a correction deadline around early September 2025. In contrast, the normal tax season deadline for non-provisional taxpayers is 20 October 2025, and for provisional taxpayers, it’s 19 January 2026. Always confirm the exact deadline on your auto-assessment notice.
What happens after 20 October 2025 deadline if I do nothing?
If you take no action within the 40 working days, the auto-assessment becomes your final tax assessment. This means you accept SARS’s calculation, and no further changes can be made unless you request an extension under specific conditions.
I want to submit a return, but the 20 October 2025 deadline is too short. What can I do?
You can request an extension via eFiling or the SARS MobiApp within the 40-working-day period, providing reasonable grounds for needing more time (e.g., incomplete documentation or complex tax affairs). If you miss this deadline, you have an additional 21 working days (totalling 61 working days from the notice date) to submit a late extension request with reasonable grounds. Submit your request promptly to avoid complications.
I have done nothing, and more than the additional 21 working days has passed. What can I do now?
After the 61-working-day period, you can only file a tax return if you demonstrate exceptional circumstances (e.g., serious illness or system errors) to SARS. Contact SARS via eFiling or call the SARS Contact Centre at 0800 00 7277 to discuss your options. Acting quickly is critical to avoid penalties or delays.
Should taxpayers accept the auto assessment?
Proceed with caution. Accepting an auto-assessment without review can lead to errors, such as:
If I reject the auto assessment, what happens next?
You can file a corrected tax return via eFiling or the SARS MobiApp within the 40-working-day period. This allows you to include all relevant income, expenses, and deductions (e.g., medical costs, travel allowances, or charitable donations) to minimize your tax liability and maximize your refund. Ensure you have supporting documents, as SARS may request them for verification.
If I accept it, and my auto assessment is incorrect, am I exempt from penalties/legal action?
No, you are not exempt. As a taxpayer, you are responsible for ensuring all income and expenses are accurately reported. If you accept an incorrect auto-assessment (e.g., missing undeclared income), SARS may audit you later and impose penalties of up to 200% of the tax owed, plus interest. Even accepted auto-assessments may trigger a SARS verification or audit, requiring you to submit supporting documents. Always verify your assessment before accepting it.
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