Finance

Good news about SARS auto assessments for 2026

Staff Writer

 ·30 Jun 2026

The South African Revenue Service (SARS) says that it will be expanding its auto-assessments in 2026 to include select provisional taxpayers, continuing the trial started in 2025.

For the 2026 Filing Season, certain provisional taxpayers may be issued an auto-assessment, SARS said. If these taxpayers are in agreement with the assessment outcome, no further action is required.

As with non-provisional taxpayers, if there is information missing or incorrectly captured in the auto-assessment, provisional taxpayers can amend and resubmit their returns.

The inclusion of provisional taxpayers in auto-assessments follows the trial launched by SARS in 2025.

This is a significant development, as auto-assessments have historically been limited to non-provisional taxpayers.

The auto assessment is a tool used by SARS to quickly process taxpayers with simpler and less complex tax affairs, pulling in data from a host of third-party sources.

Non-provisional taxpayers are typically employees who receive income from a single source, usually their employer, which is registered for employee tax (PAYE) and pays monthly taxes.

Provisional taxpayers, however, often have more complicated tax affairs, paying their income tax liability in advance, spreading it over the relevant year of assessment.

Provisional taxpayers pay at least two amounts in advance during the year of assessment, which are based on estimated taxable income.

A third payment is optional after the end of the tax year, but before the issuing of the assessment by SARS.

On assessment, the provisional payments will be offset against the liability for normal tax for the applicable year of assessment.

These taxpayers tend to be self-employed, derive income from multiple sources, and pay based on estimates, making their tax affairs less straightforward than those of non-provisional taxpayers.

Because of these complications, they have historically been ineligible for auto assessment—but SARS’ updates are now making it possible again in 2026.

It is important to note that the deadline for provisional taxpayers is different to non-provisional taxpayers.

Provisional taxpayers who do not accept the auto-assessment have until 22 January 2027 to file their returns; non-provisional taxpayers have until 23 October 2026.

Tax season 2026 dates

Tax changes for 2026

In addition to including provisional taxpayers in the auto-assessment net, SARS outlined other significant changes for the 2026 tax season.

These have been outlined below.

Simplified rules

• Some information, like IT3(t) data, if available, will be prepopulated in the form.
• The form is now simpler, with clearer questions and less repetition, so it is easier to complete.
• New questions and date fields will help taxpayers provide accurate information about their tax residency.
• A new dropdown list of approved medical-aid schemes has been introduced to assist taxpayers in selecting the correct option and reducing errors.
• The Notice of Assessment (ITA34) and Statement of Account (SOA) can be viewed through WhatsApp chat.
• Taxpayers can also upload their supporting documents directly via WhatsApp when prompted to do so.
• A new Alert Declaration questionnaire will help identify and resolve issues earlier and allow for clarification, reducing the chances of returns being selected for further verification.

Section 20A of the Act

For years of assessment commencing on or after 1 March 2026, section 20A of the Income Tax Act which deals with the ring fencing of losses, has been amended to apply from a marginal tax rate of 39% as opposed to the maximum marginal rate (45%) of tax.

This means that section 20A of the Act will use the marginal rate at which normal tax becomes payable for the relevant year of assessment to determine if the ring-fencing of the assessed loss is applicable or not.

The maximum marginal tax rate (45%) will, however, still apply to years of assessment ending before 1 March 2026.

Section 11G of the Act and Others

Allowable interest expenses — Section 10(1)(h) of the Act — and Double Taxation Agreement (DTA) line items on the ITR12 will be handled at the transaction level as opposed to the container level.

This means that when a taxpayer declares interest income received from a particular account and section 10(1)(h) and/or DTA applies, the taxpayer is expected to declare such against that particular account.

Section 11(a) of the Act

SARS has introduced a line item within the Local and Rental containers to allow taxpayers who are in a partnership to claim their own expenses incurred in the production of that trade income.

Eighth Schedule to the Act — Capital Gains/Losses

SARS has introduced a line item for taxpayers who disposed of assets that are held in a partnership, this is in respect of assets that are not a “Primary Residence”.

Recognition of Transfer (ROT) Assessment Validation

Subsequent to the updates on the Tax Directive System on 17 April 2026, SARS introduced a new validation mechanism called the Recognition of Transfer (ROT) validation.

Very importantly, it must be noted that a tax return will be rejected if:

• A lump sum transfer/ purchase of annuity (POA) between retirement funds was declared, and
• SARS issued a tax directive, but
• SARS did not receive a matching ROT from the receiving (transferee) fund. In this case, the taxpayer must contact the receiving fund and request that the ROT is submitted to SARS. Once the ROT is submitted, the taxpayer must then refresh the data on eFiling and submit the return.