SARS 2025 auto-assessment: Everything South Africans need to know before clicking ‘accept’

The 2025 tax filing season in South Africa has officially begun—and for millions of taxpayers, it may be over in just a few clicks. Thanks to SARS’s expanding auto-assessment system, many salaried individuals are now receiving pre-populated tax returns without lifting a finger. But while the process promises convenience and speed, experts are urging caution: don’t just click “accept”.

Behind the automation lies a system heavily dependent on third-party data that may not always be accurate or complete. From missed deductions to unreported income, the risk of overpaying—or under-declaring—can lead to penalties, delayed refunds, or lost benefits. This report breaks down everything you need to know about the SARS auto-assessment, including who qualifies, how to respond, common pitfalls to avoid, and why a few extra minutes of review could save you a great deal in the long run.

What Is SARS Auto-Assessment and How It Works

The South African Revenue Service (SARS) introduced auto-assessment as a digital reform initiative to simplify the annual tax return process. It is designed for individuals with straightforward tax affairs—mainly those earning fixed salaries, receiving retirement annuities, and having third-party data submitted directly to SARS by employers, banks, and medical aids. Instead of manually filing, SARS uses this pre-submitted information to automatically calculate a taxpayer’s income tax and issue a completed assessment.

If you’re eligible, you’ll receive an SMS or email from SARS prompting you to review the assessment. You can accept it immediately if you agree with the figures or reject and edit it if any data is incorrect or incomplete. The goal is to make tax filing faster and less burdensome for taxpayers with uncomplicated finances, while still keeping options open for those with more complex returns.

When the 2025 Auto-Assessment and Filing Season Starts

For 2025, SARS officially opened the tax filing season on Monday, 8 July. However, auto-assessments began rolling out as early as 7 July and will continue until 20 July. During this period, millions of South Africans will receive their pre-populated tax returns via SMS or email alerts. These taxpayers do not need to file a return unless they disagree with the figures presented.

After 20 July, taxpayers who did not receive an auto-assessment, or who choose to submit amended returns, can file manually via SARS eFiling, the SARS MobiApp, or by visiting a SARS branch. The manual filing deadline for non-provisional taxpayers is 21 October 2025, while provisional taxpayers and trusts have until 19 January 2026 to submit their returns.

Who Qualifies for SARS Auto-Assessment

Not everyone qualifies for auto-assessment. SARS primarily selects individuals with predictable, straightforward financial activity. This includes those with:

• A single source of income (usually a fixed salary)

• No business, freelance, or rental income

• No foreign assets or overseas employment

• Deductions that are already captured from third-party data, such as medical aid contributions or retirement annuity premiums

People with more complex tax situations—such as those who run businesses, earn rental or foreign income, or claim business-related expenses—must manually file their tax returns and are not eligible for auto-assessment.

How to Access and Respond to Your Auto-Assessment

If you receive an auto-assessment notification from SARS, you are expected to log in to your SARS eFiling profile, the SARS MobiApp, or use the 1347277# USSD code to view your tax return. Once reviewed, you can:

• Accept the assessment if you agree with the preloaded data. If you’re due a refund (R100 or more), it should be paid within 72 hours. Amounts under R100 are held in credit and applied to future tax obligations.

• Reject or amend the return if any income, deductions, or personal details are incorrect. You’ll then need to submit a corrected return before 21 October to avoid penalties.

This makes it essential for taxpayers to pay close attention—auto-assessments are not always complete or correct.

Why You Should Double-Check Before Clicking ‘Accept’

While SARS aims for accuracy, the auto-assessment relies heavily on third-party data. If your employer, medical aid, or investment provider submitted wrong or incomplete information, SARS has no way of detecting the error unless you do.

For example, if you worked multiple jobs during the year and one employer didn’t submit your IRP5 correctly, SARS may underestimate your income. Likewise, if you incurred qualifying deductions for a home office or travel expenses and didn’t claim them manually, you could end up paying more tax than you should.

There are also frequent issues with omitted freelance earnings, misclassified bursaries, or medical expenses that were not fully declared. That’s why financial experts and SARS itself strongly advise all auto-assessed taxpayers to review their data line-by-line before accepting.

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Common Errors to Watch Out For in Your Assessment

Taxpayers should be especially mindful of these potential red flags:

• Unreported secondary income (freelancing, Airbnb, digital sales)

• Overlooked deductions like home office claims, donations to registered charities, or logbook-related travel claims

• Incorrect banking or contact information which could delay your tax refund

• Discrepancies in IRP5 forms due to HR or payroll mistakes

• Medical aid or retirement contributions not correctly reflected

• Incorrect PAYE (Pay As You Earn) deductions, especially after job changes

If any of these apply to you, it’s better to reject the auto-assessment and file a corrected return.

Consequences of Accepting an Incorrect Auto-Assessment

Accepting a flawed auto-assessment can have serious implications. If SARS later discovers unreported income or undeclared deductions, you could face additional tax bills, interest charges, and administrative penalties. In some cases, under-declaration of income is treated as tax evasion, which can attract penalties of up to 200% of the tax owed, plus possible prosecution for fraud.

On the flip side, overpaying because of missed deductions means you’re giving the government more than you owe—money that could’ve stayed in your pocket.

How to Prepare Before and After Receiving Your Assessment

Before auto-assessment season, taxpayers are encouraged to:

• Ensure all banking and contact details are up-to-date on eFiling

• Retrieve supporting documents such as IRP5s, investment certificates, and proof of medical or retirement contributions

• Make a list of any income not automatically declared to SARS

• Double-check that employers and service providers have submitted their third-party data

After receiving the assessment, compare the figures with your documents. If everything aligns, you can accept it. If not, file your own return before the deadline.

New Features and Policy Updates for 2025

SARS has introduced a few notable changes this tax year. For one, auto-assessments are expanding to include a limited group of provisional taxpayers with less complex profiles. Additionally, foreign tax credit mechanisms have been updated, allowing unused credits to be carried forward to the next tax year.

There are also improvements to how employers report employee remuneration and tax allowances, meaning better accuracy in bonuses, bursaries, and medical fringe benefits. These changes are intended to make the system more reliable—but they also place more responsibility on both employers and taxpayers to ensure data integrity.

Simplified Filing Still Requires Personal Responsibility

SARS’s auto-assessment is a major step toward digital efficiency, but it is not foolproof. While many will benefit from the convenience, taxpayers must understand that the onus is still on them to ensure their tax affairs are accurate and complete. Clicking “accept” blindly could cost you later.

For peace of mind, spend the extra 10–15 minutes reviewing your return thoroughly. If you’re unsure about anything, consult a tax professional, reject the auto-assessment, and submit a correct return. Filing season might be easier than ever—but it still pays to be careful.