As the South African Revenue Service (SARS) rolls out its annual auto-assessment process, taxpayers are being cautioned not to automatically accept the assessments without first checking that all the information is correct.
Allan Gray tax specialist Lihle Khumalo said SARS continues to expand the use of auto-assessments by using third-party information from employers, financial institutions, retirement fund administrators and medical schemes to pre-populate tax returns.
Taxpayers selected for auto-assessment will receive a completed assessment from SARS without having to submit a tax return in the first instance.
Between 1 and 12 July 2026, SARS will notify eligible taxpayers via SMS or email if they have been auto-assessed. The notification will indicate whether the taxpayer is due a refund or has an outstanding amount to pay.
Khumalo said taxpayers who are satisfied that the information reflected in their assessment is accurate do not need to submit a tax return, as the assessment has already been finalised.
However, where the assessment reflects tax owing, the amount must be paid by the due date specified by SARS.
Taxpayers who identify incorrect or incomplete information should update and submit their returns through SARS eFiling or the SARS MobiApp.
Khumalo explained that because SARS relies on third-party information to populate returns, taxpayers cannot simply delete or amend certain information, such as IRP5 certificates.
"If you identify errors in the pre-populated data, you may need to contact the relevant third-party provider to have the information corrected at source," she said.
She warned that correcting inaccurate third-party information could delay the finalisation of a tax return, making it important for taxpayers to review their assessments as soon as possible.
While auto-assessments are intended to simplify the filing process, Khumalo stressed that taxpayers remain responsible for ensuring their tax affairs are accurate and complete.
"A quick review can make the difference between a smooth filing experience and a costly correction later. Convenience doesn't always mean accuracy, and taxpayers should carefully review every assessment before accepting it," she said.
Who needs to submit a tax return?
Although SARS may impose administrative penalties on taxpayers who fail to meet their filing obligations, not everyone is required to submit a tax return.
Generally, taxpayers must file a return if they earned income above the applicable tax threshold, conducted business, or have more complex tax affairs.
For the 2025/26 tax year, taxpayers are generally required to file if:
- Their gross income exceeded the applicable age-based threshold.
- They earned additional income, such as rental income or business income.
- They realised capital gains exceeding R40,000.
- They held foreign assets or funds above the prescribed limits.
- They are involved in more complex financial structures, such as trusts.
- SARS specifically instructs them to submit a tax return.
Khumalo noted that even taxpayers who receive an auto-assessment should confirm whether they are still required to file, particularly if their tax affairs are more complicated.
Who may not need to file?
Taxpayers with straightforward tax affairs may not be required to submit a return if:
- They earned a salary from a single employer that did not exceed R500,000 for the year and PAYE was correctly deducted.
- They received local interest income within the exemption thresholds, excluding tax-free investment interest.
- They earned returns from tax-free investments.
- They received exempt dividends as a non-resident.
- They received a single lump-sum withdrawal or retirement benefit where tax was correctly deducted through a SARS directive.
Taxpayers selected for auto-assessment may also not be required to submit a return if the information used by SARS is complete and accurate.
However, taxpayers with multiple income sources, foreign income or more complex financial affairs are likely to still be required to file a tax return.