PRETORIA, SOUTH AFRICA — As preparations accelerate for the SARS 2025/26 filing season, the South African Revenue Service has introduced a new alert system aimed at helping taxpayers avoid costly errors. With automatic assessments set to begin in early July, SARS Commissioner Johnstone Makhubu outlined the revenue authority’s strategic roadmap, technology-driven compliance measures, and revenue targets for the upcoming cycle, marking his first filing season at the helm of the organization.
Key Deadlines and the New Taxpayer Alert System
To ensure a smooth submission period, SARS has structured the filing season in distinct phases. The new alert system is designed to proactively guide taxpayers through the process, reducing common mistakes and improving overall compliance.
The official dates for the upcoming tax season are as follows:
- 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
Expanding Auto-Assessments to 6 Million Taxpayers
Under Commissioner Makhubu’s leadership, SARS is expanding its auto-assessment population. Last year, approximately 5.8 million taxpayers—representing 60% to 70% of the tax base—were automatically assessed. This year, the revenue service aims to increase that number to 6 million.
For the majority of these taxpayers, the process is highly streamlined. They are only required to verify that the pre-populated data used for their auto-assessment is accurate. If the information is correct, no further action is needed. Taxpayers who are in a credit situation can expect their refunds to be paid out within 72 hours of the auto-assessment being issued.
To achieve this, SARS relies on approximately 140 million data points sourced from employers, banks, insurance firms, and medical aids. The revenue service expects to receive the full dataset by the end of May.
Anticipating System Glitches and High Call Volumes
Despite rigorous quality assurance, Commissioner Makhubu acknowledged potential operational hurdles. A primary concern involves data alterations; if third-party information providers change submitted data after the May deadline, the initial auto-assessments generated in the first week of July may require subsequent adjustments.
SARS is also managing public expectations regarding physical and telephonic channels. Taxpayers are strongly urged not to visit SARS service centers before their designated filing windows open. During the first week of July, only those in the auto-assessment group will be able to file. Furthermore, the SARS contact center anticipates a massive surge in call volumes during the first two weeks of the season, which may temporarily affect service delivery as teams work to manage the influx.
Leveraging AI and Big Data to Tackle Non-Compliance
While SARS continues to promote a culture of voluntary compliance, the authority is aggressively deploying smart technologies to identify and penalize deliberate tax evaders.
Commissioner Makhubu revealed that SARS is utilizing Artificial Intelligence (AI) and big data analytics to cross-reference financial behaviors. A key initiative involves close collaboration with the National Treasury to track payments processed by the government. By analyzing data on company directors who receive substantial government contracts, SARS can identify individuals who may not be fully declaring their personal income or who are entirely absent from the tax system.
Revenue Targets and Economic Impact
The upcoming filing season plays a critical role in the broader South African economy. Between July and January, SARS expects to pay out approximately R40 billion in refunds, injecting much-needed liquidity back into the market.
Regarding overall revenue collection, the national budget tasked SARS with collecting R2.13 trillion for the fiscal year. Currently three months into the 12-month cycle, Makhubu noted that early results are promising. Barring significant escalations in geopolitical tensions or global supply chain disruptions, the Commissioner expressed strong confidence that SARS will meet, or potentially exceed, the R2.13 trillion target.
