SARS auto-assessments streamline tax filing for 2026, but experts warn of potential pitfalls. (Photo: ER Lombard) / Gallo Images) When the 2026 filing season opens, millions of South Africans will receive SARS auto-assessments based on information the revenue service already has. This includes data from employers, medical schemes, banks, insurers, retirement funds and other third-party providers.
For many taxpayers, this is convenient. SARS does much of the admin, pre-populates the return and may even pay refunds automatically if there are no banking, compliance or verification issues.
Taxpayers who are not auto-assessed, or who disagree with their assessment, can file from 13 July. The deadline for non-provisional individual taxpayers is 23 October, while provisional taxpayers have until 22 January 2027.
For 2026, SARS has enhanced parts of the process. These include pre-filled third-party data such as investment income, a simplified return with clearer questions, a dropdown list of approved medical aid schemes to reduce errors, assessment notices via WhatsApp and a new declaration alert questionnaire aimed at reducing the number of returns flagged for verification.
“SARS auto-assessments should be genuinely better this year,” says André Bothma, head of tax at TaxTim. “But SARS can only assess what it can see. If income or deductions aren’t in the data SARS receives, your assessment won’t include them, so it’s your responsibility to fix it.”
The most important thing to understand about auto-assessments is that they are based on data SARS receive.
That data may include your IRP5 from your employer, your medical aid certificate, your retirement annuity certificate and investment income certificates from financial institutions. If you have a straightforward salary, one employer, one medical aid and no additional income or unusual deductions, your auto-assessment may be correct.
However, freelance work, side-hustle income, rental income, foreign income, Section 18A donations, qualifying out-of-pocket medical expenses, home-office expenses, business travel claims and direct retirement annuity contributions may not always be reflected correctly.
Two risks
There are two different risks. Missing income can cause you to under-declare, which may lead to SARS queries. Missing deductions means you may pay more tax than you need to, or miss a refund you are entitled to.
Danielle Luwes, tax director at Hobbs Sinclair, says while SARS has made enormous strides in digitising the tax system, it cannot independently verify every aspect of your financial affairs.
Luwes says you should pay particular attention to retirement annuity contributions, medical expenses that may qualify for additional tax credits, travel allowances and business-related travel claims, rental income and related deductible expenses, interest and investment income, changes in tax residency status, freelance or consulting income, and employer payroll errors on IRP5 certificates.
In practice, this means checking your SARS assessment against your actual documents. Look at your IRP5, medical aid certificate, retirement annuity certificate, investment certificates and records of any additional income.
If third-party data are wrong, you may not be able to simply edit this on the return. Where an employer, medical scheme or fund has submitted incorrect information, SARS generally requires that provider to correct the data and resubmit it.
If you do not respond to your auto-assessment, SARS treats that as agreement and the assessment stands. If a refund of R100 or more is due, SARS says it is paid automatically within 72 hours, provided there are no banking, compliance or verification issues.
If you disagree with an auto-assessment, you can submit a corrected return through your preferred filing channel during the normal filing season.
Gus Arnold, a tax specialist at NMG Benefits, warns that ordinary taxpayers are often caught off guard because they assume they do not need to file if they earn below the tax threshold.
For the 2026 year, the threshold is R95,750 for taxpayers under 65. But Arnold says seemingly minor financial events can still trigger filing obligations.
“Seemingly minor financial events can unexpectedly force you to file. A savings- or two-pot withdrawal creates a second income stream that’s taxed as normal remuneration. Having more than one IRP5 generally makes filing a tax return compulsory, as SARS requires all sources of employment income to be declared and assessed together,” says Arnold.
Other triggers may include bank interest above the annual exemption, capital gains from selling shares, unit trusts, cryptocurrency or a primary residence above R2.5-million, foreign dividends or rental income.
Two-pot retirement withdrawals deserve special attention. These are taxed at marginal tax rates and can push taxpayers into a higher tax bracket. If you spend the full withdrawal without considering the tax effect, you may find yourself with an unpleasant SARS bill.
Provisional tax is another area where taxpayers can get caught. Self-employed people generally need to pay provisional tax, and SARS can also classify people with multiple income sources as provisional taxpayers. Some individuals with normal employment income and more than R30,000 in other taxable income, such as interest, foreign dividends, rental income or remuneration from an unregistered employer, may need to register as provisional taxpayers.
If your tax affairs are complicated, ask for help. The cost of a short tax review may be far less than the cost of getting it wrong. DM