How Does Auto-Assessment Work?

By Tevait Feanle •  Updated: 01/23/24 •  5 min read

In an attempt to boost tax compliance in South Africa, as well as make tax returns easier for people with uncomplicated income situations, SARS has now introduced its auto-assessment system for some taxpayers. As a new offering, it is still unfamiliar to many South Africans, and you may be surprised if you get a notice that you have been auto-assessed for an amount! Today we are unpacking some of the key aspects of this new system, and what you should know about it.

- ADVERTISEMENT -

How Does Auto-Assessment Work?

SARS auto-assessment is a system that leverages the existing pre-populated taxpayer data you are used to on your tax return to automatically generate an individual’s tax assessment. SARS takes the information gathered from your employer, financial institutions, and other third-party sources to create a preliminary assessment without direct input from the taxpayer.

Key components of how SARS Auto-Assessment works are:

For those with an uncomplicated return and a single income source, this will make filing your annual income tax return a lot simpler. However, you should always check the data very carefully. As it is generated from third-party sources, it may miss important deductions you are due, or fail to account for all income you need to declare.

Is SARS Doing Auto-Assessments?

Yes, SARS piloted the program in 2022, and it will be carried on for the 2024 tax year. While you only had 40 days to respond to the auto-assessment notice last year, this year you will have almost the entirety of the standard tax season to check and return your income tax form. All the same, keep a careful eye on what is happening regarding auto-assessments, as they will stand as fact if you do not check and confirm them and the deadline passes.

How Do I Check My SARS Assessment?

Checking your SARS assessment, whether auto-generated or self-submitted, is a straightforward process through the SARS e-filing platform. Follow these steps to review your assessment:

Whether or not you are expecting an auto-assessment, checking your SARS eFiling account will make sure that you are always confident and informed about your tax status and can address any discrepancies promptly.

How Does SARS Self-Assessment Work?

While auto-assessment will streamline the income tax return process for many taxpayers, some individuals will still prefer self-assessment. This gives you a far more active role in preparing and submitting your tax return and will be favored by those with multiple income sources, considerable deductions to claim, or other complications that an auto-generated return won’t properly grasp. There’s nothing special to know about the self-assessment process, as it is what you have been doing already.

Taxpayers input their financial information directly into the SARS e-filing platform. This includes details such as income, expenses, and deductions. They are wholly responsible for verifying the accuracy of the information provided and ensuring that all relevant details are included. Once you are satisfied with the self-assessment, the return can be submitted electronically through the eFiling platform. SARS may conduct audits or reviews to verify the accuracy of your self-assessment, so keeping your supporting documentation is essential.

What to Do if You Are Not Auto-Assessed by SARS?

The introduction of the auto-assessment system doesn’t mean you’re off the hook if you don’t get auto-assessed! If you weren’t selected for SARS auto-assessment this year (or any year), you will need to compile and submit your income tax return as you did in previous years.

How Do I Reject SARS Auto Assessment?

If you do not agree with your SARS auto-assessment, you will need to file a dispute. This can be done most easily via eFiling, where you will navigate to the tax return and use the ‘file despite’ button. Expect to have to provide supporting documents and other proofs to motivate the change you want to see.

The new SARS auto-assessment feature will do a lot to streamline and simplify income tax submission, although, for more complicated returns, self-assessment will still be the favored method.

- ADVERTISEMENT -

Keep Reading

How to Remove a User From SARS eFiling

How to Remove a User From SARS eFiling

Learn how to remove a user from your SARS eFiling account in just a few easy steps. Keep your tax information secure and control who has access to your account.

How Does SARS Calculate Travel Allowance?

How Does SARS Calculate Travel Allowance?

How Does SARS Calculate Travel Allowance? This article will cover the travel allowance topics of SARS and other related matters.

eFiling Payments (Credit Push): How to Set Up Credit Push on eFiling

eFiling Payments (Credit Push): How to Set Up Credit Push on eFiling

Credit push payments are one of the methods for paying for returns due to SARS. Here’s everything you need to know to utilize this SARS payment method

How to Activate Personal Income Tax

How to Activate Personal Income Tax

This tutorial will walk you through activating your personal income tax and submitting your tax return using SARS eFiling.

How Can I Avoid Paying Tax in South Africa?

How Can I Avoid Paying Tax in South Africa?

How Can I Avoid Paying Tax in South Africa? Today we look at this thorny issue in more detail.

All About Disability And Medical Expense Tax Credits 

All About Disability And Medical Expense Tax Credits 

Today we’ve assembled a quick guide to everything related to the disability and medical expense tax credits from SARS

How to Request My B-BBEE Certificate

How to Request My B-BBEE Certificate

This article seeks to address some of the discrepancies in information by providing a comprehensive guide to all things related to B-BBEE certificates.

How the SARS Income TAX Brackets Work

How the SARS Income TAX Brackets Work

This guide is meant to give you the information you need to understand and navigate the tax brackets set by SARS in South Africa easily

How to Change User Rights On eFiling

How to Change User Rights On eFiling

How to Change User Rights On eFiling. Follow our step-by-step guides for changing user rights, adding users, and authorising move requests.

How To Become Tax Compliant in South Africa

How To Become Tax Compliant in South Africa

Today, we have a brief guide to tax compliance in South Africa to help you get your tax affairs in order.

What Happens When You Owe SARS Money?

What Happens When You Owe SARS Money?

This article seeks to help prevent similar situations from occurring by answering all the questions in relation to SARS owing you money.

How to Claim Work From Home Tax Credit In South Africa

How to Claim Work From Home Tax Credit In South Africa

This handbook will guide you through claiming the work-from-home tax-related credit in South Africa.

How to Submit EMP501 on e@syFile™

How to Submit EMP501 on e@syFile™

This article will guide you through submitting your EMP501 on SARS eFiling, including the requirements, necessary steps, and tips for ensuring a successful submission.

Reasons You Still Need to File Your Tax Return 

Reasons You Still Need to File Your Tax Return 

Reasons You Still Need to File Your Tax Return. Here are some good reasons why you should file your tax return

How Long Does SARS Take to Review Documents?

How Long Does SARS Take to Review Documents?

How Long Does SARSTake to Review Documents? Read on to learn how long it takes for SARS to review documents.