Unlock your tax savings: a guide to navigating auto-assessments

As the 2025 tax season gets underway, millions of South Africans have already received their auto-assessments from the South African Revenue Service (Sars).

But while these automatically generated assessments may seem like a welcome convenience, financial experts are urging taxpayers to proceed with caution before simply clicking "accept."

“Auto-assessments should not be accepted blindly,” warns Thys van Zyl, CEO of Everest Wealth Advisory. “Tax season is, in fact, a golden opportunity to reduce your tax liability and potentially even receive a refund.”

Van Zyl stresses that although Sars uses third-party data to calculate auto-assessments, these calculations may not include all the deductions you’re entitled to. “The reality is that not all allowable deductions are necessarily included. Additional deductions may include extra medical expenses, charitable donations, and home office or travel allowances. If you simply accept the auto-assessment, you may get less back than you’re actually entitled to," he says.

According to Van Zyl, if you’ve already received an auto-assessment and refund but realise you’ve missed important deductions, all is not lost. Taxpayers can still submit a tax return manually to correct or supplement the information provided by Sars.

“It’s often wise to set aside the refund until the amended return has been processed. Just as it is every taxpayer’s responsibility to ensure their tax return accurately reflects their income and expenses, they must also make sure they are refunded if they’ve overpaid or qualify for deductions," says Van Zyl.

He says, importantly, taxpayers remain legally accountable for any errors, even if those originate from Sars' side. “That’s why you should always make sure your information is complete. If you notice any mistakes or omissions, you must request an amendment before accepting the assessment. Claiming that Sars calculated it and that it must therefore be correct will unfortunately not hold up. If you don’t submit the correct information, it may result in penalties and interest on overdue tax – or, in severe cases, even criminal consequences," Van Zyl says.

The 2025 tax season officially opened on July 7, with the rollout of auto-assessments. Taxpayers who want or need to submit returns manually can do so from July 21 to October 20, 2025, while provisional taxpayers have until January 19, 2026.

According to Sars, 5.8 million taxpayers received auto-assessments this year, up from 5 million in 2024. Sars says 99.6% of those assessments have remained unchanged by taxpayers so far, and R10.6 billion in refunds have already been paid, most within 72 hours.

Still, Van Zyl encourages South Africans to take a proactive approach: “Tax season is an opportunity to take control of your finances and make the most of legal deductions and benefits.”

Van Zyl says the most powerful tools available to taxpayers are:

• Tax-Free Investments: You can invest up to R36,000 per year (or R500,000 over your lifetime) tax-free, with no tax on dividends, interest, or capital gains.
• Retirement Contributions: You can deduct contributions to retirement funds up to 27.5% of the greater of your taxable income or remuneration, capped at R350,000 annually.

“It’s smart to ask yourself during tax season: How can I make my money work for me? Even small contributions to a tax-free savings account or retirement annuity can make a big difference over time, especially thanks to the power of compound growth," Van Zyl says.

Sars says the auto-assessment process is part of its broader drive to become a “smart, modern” tax authority, using artificial intelligence, machine learning, and big data to streamline compliance. So far, more than 2.1 million taxpayers have engaged Sars through its digital channels, including:

• Online Query System (SOQS)
• WhatsApp (707,000 queries)
• Lwazi Chat Bot
• eFiling and the SARS MobiApp, which saw over 10.2 million logins since July 4.

Sars commissioner Edward Kieswetter praised the success of this year’s auto-assessment initiative, calling it “a game changer” in making tax compliance easier. “Ultimately, our aim is to make the best service to be no service at all. I encourage taxpayers to use our digital channels rather than queue at our Service Centres," he says.

However, Sars also cautions taxpayers to be alert to scams. They remind users that Sars will never request engagement through unofficial links and urges the public to protect their login details and consult only registered tax practitioners. Suspicious messages or phishing attempts should be reported to phishing@sars.gov.za.

“Make sure your details are up to date, keep all necessary documentation, and use the legal mechanisms available to reduce what you owe – or to get something back. If you plan smartly and file on time, you can not only stay compliant but benefit from the process as well," Van Zyl says.

Helpful Sars resources for 2025 Filing Season:

• Website: www.sars.gov.za
• Online Query System: SOQS
• WhatsApp: 0800 117 277 (send “Hi”)
• SARS AI Virtual Assistant: Available 24/7 on the website
• Dial: 1347277# for mobile access
• YouTube: @sarstax

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