The tax season is actively ongoing, and many South Africans have already undergone automatic assessments by the South African Revenue Service (SARS), with billions of rand paid out to taxpayers in refunds.
The automatic assessment period for South African taxpayers has ended. Those who still need to file income tax returns can use the SARS MobiApp mobile application to complete the process.
Taxpayers who were not selected for automatic assessment, or those who need to make changes to their assessment, can use the SARS eFiling system or the SARS MobiApp mobile application to submit their returns.
However, taxpayers considering not fulfilling their filing obligations may face serious financial consequences, as SARS has the right to impose administrative penalties on those with unsubmitted returns.
According to the South African Tax Institute, SARS can apply fixed administrative penalties to taxpayers who do not provide income tax returns.
The Institute noted: 'For unsubmitted tax returns, SARS applies a fixed penalty structure based on your assessed loss or taxable income from the previous year. This penalty ranges from R250 for taxpayers with an assessed loss or lower income up to R16,000 for corporations whose income exceeds R50 million.'
It is important to understand that this is not a one-time fine. The administrative penalty accrues monthly for every month the non-compliance persists. SARS will continue to charge this monthly fee until the overdue return is filed.
Furthermore, the organization added that 'the penalty can last a maximum of 35 consecutive months if SARS has your current registered address, or up to 47 months if your address is unknown.'
Thus, ignoring a monthly penalty of R2,000 could lead to a massive debt of R70,000 over 35 months.
The South African Revenue Service (SARS) has paid out billions in tax refunds since the start of the 2026 tax filing season. However, taxpayers expecting funds can track the status of their refund through the service's digital channels.
Last week, SARS reported that approximately 1.9 million taxpayers underwent automated assessment, with about 8 billion paid out in refunds within 72 hours of the filing season opening. The service expects to conduct automated assessments for roughly six million taxpayers throughout the season. This process is designed to simplify tax filing while allowing taxpayers to verify their data and ensure the accuracy of submitted returns.
Automated assessments are pre-filled tax returns created by SARS using information obtained from third parties, including banks, employers, medical scheme administrators, and pension funds. Although the goal of the process is simplification, the responsibility for verifying the correctness of the information before accepting the assessment remains with the taxpayers.
Although some taxpayers have already received their refunds, others may still be awaiting payment processing. IOL previously reported that not everyone will benefit from the automated assessment system. The service stated that the process only works when the taxpayer's information is complete, consistent, and verified through third-party data sources, such as banks and employers.
The service clarified: 'You will not receive an automated assessment if your personal information is incomplete (you can update your details on eFiling). You will also not be subject to automated assessment if you earn income other than salary and investment income, such as rental income.'
There are several convenient digital channels to check the status of a tax refund. A taxpayer can use SARS WhatsApp by sending 'Hi' or 'Hello' to the number 0800 11 7277. They must then select the 'Refund Status' option, enter their identification number, passport number, or refugee number, provide their tax account number, and submit the request.
The SARS MobiApp mobile platform is also available: one should open the application, tap 'Refund Status' on the main screen, and follow the instructions. Additionally, the SARS USSD service can be used by dialing *134*7277# and selecting option 3, after which the identification number, passport number, or refugee number must be entered.
With the start of the annual tax return filing season in South Africa, millions of taxpayers are required to submit their returns to the South African Revenue Service (SARS). While some taxpayers undergo automatic assessment between July 1 and July 12, 2026, others must submit documents manually before the deadline.
It is important to understand that not all taxpayers are obligated to file a return. SARS automatically assesses many citizens using data received from employers, banks, medical schemes, pension funds, and other third parties. If your tax affairs are simple and you agree with the automatic assessment, filing a return may not be necessary.
However, those who are required to file a return must do so by the date announced by SARS. This category includes individuals receiving additional income, self-employed persons, those with rental income, foreign income, or those with more complex tax circumstances.
If you fail to file a return on time when required, SARS may impose a range of penalties, including administrative sanctions, interest on unpaid tax, and the possibility of debt recovery.
One of the quickest consequences is a monthly administrative penalty. These penalties accrue every month the return remains unfiled and can continue for up to 35 months. The penalty amount depends on your taxable income and ranges from R250 to R16,000 monthly. The situation is aggravated by the fact that the longer the return is not filed, the more expensive it becomes.
If you owe money to SARS and do not pay it by the due date, interest begins to accrue on the unpaid amount. This interest continues to grow until the tax debt is fully settled, increasing the total outstanding amount. In some cases, SARS may also impose additional penalties for unpaid taxes.
Persistent non-compliance can lead SARS to take steps to recover outstanding tax debts. These measures may include direct debiting from your bank account, requiring your employer to withhold funds from your salary, appointing a third party, such as a bank or employer, to pay SARS on your behalf, as well as seizing and selling assets subject to necessary legal procedures.
Willful failure to submit tax returns or persistently ignoring correspondence from SARS can expose taxpayers to more serious consequences. According to the Tax Administration Act, non-compliance in certain cases can lead to criminal prosecution, especially if there is evidence of intentional tax evasion, fraud, or providing false information. Sentences may include fines or imprisonment, depending on the nature and severity of the offense.
Yes, even if you have missed the deadline, taxpayers should file their outstanding return as soon as possible. A late submission does not automatically cancel already imposed penalties, but it prevents the endless accumulation of additional monthly penalties and helps taxpayers get their tax affairs in order faster.
If there is a tax debt, timely payment also limits the amount of interest that continues to accrue. However, if you cannot pay your tax debt immediately, you should not ignore SARS. The Revenue Service offers payment arrangement options in appropriate cases, allowing taxpayers to repay unpaid taxes over a specified period instead of a lump sum.
Taxpayers experiencing financial difficulties are advised to contact SARS in advance rather than waiting for enforcement action. In certain circumstances, SARS may waive or reduce administrative penalties if taxpayers can demonstrate valid reasons for their non-compliance. Each application is considered individually, and supporting documentation may be required. Nevertheless, taxpayers should not assume that penalties will be automatically waived simply because they eventually file their return.
