Taxpayers who received an automatic assessment from SARS this month have the option to submit a corrected declaration if inaccuracies or omissions are found. One of the most frequently overlooked aspects is the accounting of contributions made months or even years before the current assessment was generated.
In this reporting period, SARS has already automatically assessed over 1.9 million taxpayers and paid out approximately 8 billion rand in refunds within 72 hours, with the total number of assessments expected to exceed six million. This high speed is due to system improvements this year, as well as timely and accurate data reception from employers, medical aid schemes, and pension funds.
The most common discrepancies arise when accounting for contributions to pension annuities, especially if the contribution was made through a provider or in a year that does not match the current assessment period. Although SARS is accelerating the refund process, this increases the requirement for what the taxpayer considers accounted for and verified by the system.
Contributions to pension annuities can be deducted up to 27.5% of the taxpayer's income or taxable income according to Section 11F of the Income Tax Act. From March 1, 2026 (for the 2026/2027 tax year), the maximum annual monetary limit for pension fund deductions was increased from 350,000 rand to 430,000 rand. Contributions exceeding this limit are automatically carried over to the next tax year and must appear on the assessment notification, ITA34.
The problem is that this amount depends on the correct linkage of the current assessment with historical contributions. When this link is broken, the deduction is lost, and the assessment itself rarely shows an explicit sign that something is missing. Most people treat their pension annuity as a one-time setup that they no longer check. The assessment notification is not designed to automatically detect missing amounts; the taxpayer or a trusted consultant must check for discrepancies.
Individuals who have changed jobs, switched pension providers, or made contributions outside of standard payroll deductions need to carefully review their assessment and ensure that past year's excess contributions are included. If they are missing or look unfamiliar, it is worth raising this issue before accepting the assessment or before the acceptance deadline expires.
A corrected declaration can be submitted via eFiling until October 23, 2026, even after the assessment has been accepted. Checking your own figures is the same discipline that should be applied to any document related to your name and money. Other common gaps in automatic assessments include home office expenses, actual travel claims based on a logbook, and rental or freelance income that the SARS system is not configured to track through third-party data. It is recommended to consider July as an annual review of your tax affairs. A consultant notes that many clients have old contributions that never made it into the assessment, and they were unaware of it; the sooner this is discovered, the less time and money is required for correction.
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.
The tax season has begun, and the South African Revenue Service (SARS) has already conducted an automatic assessment for approximately 1.9 million taxpayers.
Although many citizens receive ready-made calculations, some taxpayers remain outside this system. Previously, IOL reported that around six million taxpayers were expected to be automatically assessed during 2026. SARS Commissioner, Dr. Johnstone Makubu, also stated that the automatic assessment program has been expanded and will now include another 200,000 temporary taxpayers with relatively simple tax affairs.
Automatic assessment allows the revenue service to use data obtained from employers, banks, medical schemes, pension funds, and other third-party data providers to automatically calculate a taxpayer's tax position. Taxpayers selected for this assessment receive notifications from SARS in groups and can view their calculations via eFiling or the SARS MobiApp mobile application.
According to SARS, by the end of July 1, 2026, over 1.9 million taxpayers had undergone automatic determination, and approximately 8 billion in tax refunds were paid within the first 72 hours after the start of the tax season.
However, not everyone will be able to utilize the automatic assessment system. The service indicated that the process only functions if the taxpayer's information is complete, consistent, and verified through third-party data sources, such as banks and employers.
SARS emphasized that automatic assessment will not be provided if personal information is incomplete (details can be updated on eFiling). Furthermore, automatic assessment does not apply if income is not derived from employment and investments, such as rental income. In fact, automatic assessment is intended for taxpayers with simple financial matters whose income can be verified by third parties. Taxpayers with complex financial affairs, missing information, or income that SARS cannot automatically verify will generally have to file a tax return during the regular season.
Specifically, taxpayers receiving business income or foreign income, having capital gains, multiple sources of income, or other information that cannot be verified through third-party data, are generally not suitable for automatic assessment.
