PRETORIA, GAUTENG — As South Africa prepares for the SARS 2025/26 filing season, the revenue authority has unveiled a proactive alert system designed to help taxpayers avoid costly submission errors. Spearheaded by SARS Commissioner Johnstone Makhubu during his first tax cycle at the helm, the upcoming period will feature an expanded auto-assessment program, aggressive artificial intelligence compliance tracking, and a massive R40 billion economic injection through refunds.
Expanding the Auto-Assessment Net
A central pillar of the upcoming tax cycle is the expansion of the automatic assessment pool. During the previous cycle, approximately 5.8 million individuals—representing 60% to 70% of the total tax base—were auto-assessed. For the current cycle, the revenue service aims to push this figure to 6 million taxpayers.
To facilitate this, SARS aggregates roughly 140 million data points from a variety of third-party sources, including employers, financial institutions, insurance companies, and medical schemes. The authority expects to have the complete dataset in hand by the end of May.
For the millions of South Africans selected for auto-assessment, the process is designed to be largely frictionless. Taxpayers are only required to review the pre-populated information to ensure its accuracy. If the details are correct, no further action is needed. Furthermore, those who are in a credit position can expect their refunds to be disbursed within 72 hours of the assessment being issued.
Staggered Submission Windows and System Vulnerabilities
To manage the massive volume of returns, SARS has implemented a strict, staggered calendar for the SARS 2025/26 filing season:
- Automatic Assessments: 1 July to 12 July
- Non-Provisional Taxpayers: 13 July to 22 October
- Provisional Taxpayers and Trusts: 13 July to 22 January 2027
Despite meticulous planning, Commissioner Makhubu highlighted three primary areas where operational glitches could occur. The first vulnerability lies with the third-party data providers; if an employer or medical aid alters their submitted data after the May cutoff, the initial auto-assessments generated in early July may require subsequent corrections.
The second potential hurdle involves public behavior. SARS is urging taxpayers not to visit physical branches before their designated window opens. During the first week of July, only those in the auto-assessment cohort will be permitted to file. Taxpayers who are not auto-assessed must wait until 13 July to utilize SARS channels, and early arrivals at service centers could cause localized bottlenecks.
Finally, the SARS contact center anticipates a severe spike in telephonic traffic during the first two weeks of the season, which may temporarily impact wait times and service delivery as agents work to absorb the shock.
Artificial Intelligence and the War on Non-Compliance
While the revenue service continues to champion a culture of voluntary compliance, it is simultaneously deploying advanced technologies to root out deliberate tax evasion. Commissioner Makhubu confirmed that SARS is heavily leveraging big data and artificial intelligence to identify individuals attempting to dodge their obligations.
A prime example of this smart dragnet is a newly fortified collaboration with the National Treasury. By analyzing government payment processing data, SARS can track substantial contracts awarded to company directors. This allows the authority to verify whether these individuals are accurately declaring their personal income or to identify entirely unregistered taxpayers who are actively receiving state funds but contributing nothing to the tax base.
Revenue Targets and the R40 Billion Economic Stimulus
The tax season serves a dual purpose: funding the state and stimulating the economy. Between July and the closure of the season in January, SARS expects to pay out approximately R40 billion in refunds, providing a vital liquidity boost to households and businesses.
On the broader fiscal front, the national budget tasked the revenue service with collecting R2.13 trillion for the year. Currently three months into the 12-month fiscal cycle, Makhubu noted that early collection trends are highly encouraging. While he cautioned that it is premature to make definitive calls, the Commissioner expressed strong confidence that SARS will meet, or potentially surpass, the R2.13 trillion target, provided that global supply chain disruptions and geopolitical tensions do not severely escalate.