Some taxpayers have been auto-assessed by SARS and will not have to file a tax return if they are satisfied with the outcome. If you are in the auto-assessment group, you will receive a notification from SARS during the first few days of July.
What is an auto-assessment?
This is an automatic assessment issued by SARS to certain taxpayers. SARS uses data collected from employers, financial institutions, medical schemes, retirement annuity fund administrators and other 3rd party data providers to generate the assessment automatically.
How will I know if I have been auto-assessed?
You should receive a SMS from SARS at the beginning of July informing you that you have been selected for auto-assessment.
What must I do when I receive my auto-assessment?
You should review your assessment, either by logging into eFiling or on the SARS MobiApp. You will be able to see the data used to calculate your assessment.
If you are in agreement with the assessment, then check if a refund is due to you or if you owe SARS. If a refund is due, then there is nothing more you have to do. You can expect to receive your refund within about 72 hours (provided your banking details with SARS are correct). If you owe SARS, then make the payment via eFiling or SARS MobiApp by the due date specified on your assessment.
If you are not in agreement with the assessment, your tax return needs to be completed.
What is the tax deadline if I have been auto-assessed?
For the 2023 tax season, the deadline is the same as the tax season for salaried employees (23 October 2023).
For the 2022 tax season, SARS gave a deadline of 40 business days for auto-assessed taxpayers.
When should you not accept the SARS auto-assessment?
When any of the below applies:
You do not agree with the amounts reflected on your assessment.
You qualify to claim home office expenses.
You donated to a Public Benefit Organisation and received a Section 18A tax certificate.
You received a travel allowance or drive an employer-provided vehicle for work.
You have additional out-of-pocket medical expenses that were not covered by your medical aid.
You incurred medical expenses (including medical scheme contributions where you are not the principal / main member of the medical scheme) in respect of any immediate family member who is dependent on you for family care and support.
You received other income that was not reflected on your assessment, including but not limited to distributions from a trust, rental income, and freelance income. This includes income accrued but not received, as well as taxable, non-taxable and foreign income.
You sold assets (incl. crypto and foreign assets) which have not been taken into account on your assessment.
You invested in a Venture Capital Company.
You worked outside of South Africa during the tax year.
You qualify for any other deductions or exemptions.