An auto-assessment is an automatic evaluation conducted by SARS for specific taxpayers. Utilizing data gathered from employers, financial institutions, medical schemes, retirement annuity fund administrators, and various third-party data providers, SARS generates the assessment autonomously, without requiring any participation from the taxpayer.
If you have been auto-assessed, you will receive a notification via SMS or email from SARS to notify you. You should not accept an auto-assessment. It may be inaccurate and could lead to you paying more tax than necessary. This can happen when SARS does not have your correct tax certificates. You may also miss out on relevant expense deductions, such as medical expenses, travel expenses and home office expenses.
If SARS has already issued you a refund for an auto-assessed amount, you are still able to file your tax return. By doing so, you can include all eligible deductions, allowing you to reduce your tax liability and enhance your chances of receiving a refund.
It is up to you to accurately report all your income and expenses to SARS. If you accept your auto-assessment but neglect to declare some income, SARS may impose a penalty of up to 200% of the tax owed (along with interest!) if they conduct an audit later and uncover the oversight.
When you submit your tax return, SARS will provide you with an assessment (ITA34) displaying your updated tax refund or liability. If you claimed deductions in your tax return, your tax obligation should be lower, resulting in an additional refund from SARS for the difference between the auto-assessment and your tax return assessment. If you reported extra income (like rental income) on your tax return, you will be required to make a tax payment to SARS.
If you miss the deadline to submit your tax return, you will need to request an extension through eFiling and provide a valid explanation for the delay. The 'Request for Extension' button will be accessible for three years from the date of auto-assessment, according to the latest guide from SARS dated 2 September 2024.
If you file after the deadline, SARS will impose administrative penalties on a monthly basis until your tax return is submitted.
