As the 2026 tax filing season opens, millions of taxpayers will receive a notification that their income tax will not be assessed automatically this year. If you fall into this group, know that you are not alone and are not in trouble, but you need to take action, and seeking professional help is the most sensible step.
SARS automatically assesses taxpayers with simple affairs, typically employed individuals whose IRP5 data provided by the employer is complete and who have no open queries in their profile. If your tax profile includes any of the following points, SARS will exclude you from the automatic assessment, and you will need to complete and submit the return yourself:
Such complex cases include: rental income, business income or self-employed expenses; commission income or foreign source income; trust income; benefits such as travel, accommodation, or tools compensation; additional deductions you previously claimed; capital gains or asset realization; change of postal or physical address in the SARS system; incorrect or outdated bank details in the profile; having an open audit, review, or dispute with SARS; and changes you made to a previous automatic assessment.
Simply put, any complexity in your tax matters, even a routine one like a home office or rental property deduction, will likely remove you from the automatic assessment list. This complexity underscores the importance of obtaining professional support.
Your return must be submitted no later than October 23, 2026 (for taxpayers filing electronically). Although the steps seem fundamentally simple—you need to confirm the obligation to file, gather documentation, log into the eFiling system or the SARS mobile app, and submit the return—errors can occur in the details.
A registered tax practitioner guarantees the completeness of your return, ensures that you claim all entitled deductions and exemptions, and verifies that your supporting documentation is in order in case SARS decides to audit your return. Specialists work with SARS systems daily. They have a good understanding of the rules, risks, and ways to mitigate them, and they are bound by a professional code of conduct that protects you. Tax season is not the time for guesswork. If SARS has notified you that you need to pay attention to your return, give it the proper attention by securing the support of a qualified specialist.
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.
As the 2026 tax season opens, with billions already paid out in refunds, national debt consultants point to a growing risk among middle and high-income earners who take out short-term loans while waiting for tax reimbursements.
The 2026 tax season in South Africa began with an emphasis on automated assessments, expedited processing, and early refund payments. By July 1, 2026, SARS had conducted automatic assessments for over 1.9 million taxpayers and disbursed approximately 8 billion in early refunds within 72 hours.
While this speed is a positive aspect for many taxpayers, it can create a risk in financial planning if consumers begin to consider the expected refund available before it is credited to their account.
A tax refund should only be considered available funds after it has actually been deposited into the taxpayer's account. Until then, it remains under the control of SARS processes, including verification, compensation, compliance checks, and potential adjustments.
Debt consultants often observe consumers making decisions about short-term loans or expenditures based on anticipated lump-sum income, such as tax refunds, bonuses, or pension withdrawals. The greatest risk arises when the expected amount has already been allocated to several expenses before its actual receipt.
The core issue is not the usefulness of the refund itself, as it is often beneficial. The problem lies in the order of fund arrival. If a consumer takes out a loan before the refund is paid, and then that refund is delayed or reduced, the household creates an additional repayment obligation without the expected cash inflow.
This risk is particularly relevant following the introduction of the two-container pension system. SARS has stated that taxpayers withdrawing funds from a retirement fund must remain tax compliant, with taxes being deducted from withdrawals, and any amounts due to SARS potentially being deducted before the payment itself.
SARS has also confirmed that underpayments or overpayments related to these withdrawals are reconciled during the annual filing. Many consumers already have two tax years where pension withdrawals, outstanding tax balances, or past compliance issues may affect their final position with SARS.
The two-container system has added another layer to personal tax planning. A taxpayer might believe they are entitled to a refund based on PAYE, medical credits, or pension contributions, but the final outcome could be altered by earlier withdrawals, tax debt, penalties, interest, or unfiled returns.
The volume of withdrawals demonstrates why this is not a minor issue. An official SARS update published on January 31, 2025, recorded 2,664,279 applications for tax directives for savings withdrawal benefits, of which 2,403,379 were approved, with the total amount paid amounting to 43.42 billion in gross lump-sum payments.
The practical concern is that some consumers may plan their finances based on the expected refund without first checking if SARS has any claims against those funds.
For households with limited monthly surplus, even a small delay in a refund can cause financial strain. If a taxpayer has already used a short-term loan to cover expenses, a delay or reduction in the refund can turn a cash flow mismatch into a debt repayment problem.
The current economic situation exacerbates this risk: households continue to face pressure from fuel prices, medical insurance, municipal bills, food, and previous interest rate hikes. Consequently, lump-sum payments are often used to settle debts rather than for discretionary spending.
It is recommended that taxpayers take several steps before committing to financial obligations related to an expected refund from SARS:
Refunds should be viewed as a balance restoration, not as future income. The most effective use of a refund is usually to reduce expensive debts, catch up on arrears, build a small emergency reserve, or settle liabilities that attract interest or penalties.
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.
