On 25 September 2026, the South African Revenue Service (SARS) published Public Notice 7958 in Government Gazette 55438, extending the deadline for provisional taxpayers who received an automatic assessment under Notice 7422 (published 30 April 2026) to request a reduced or additional assessment. The original deadline, set under section 95(6) of the Tax Administration Act, 2011, has been pushed to 22 January 2027. This extension provides affected taxpayers with additional time to review their automatic assessments and submit requests for adjustments where the assessment does not reflect their actual tax liability. The notice applies specifically to provisional taxpayers who were assessed automatically under paragraph 3(3) of Notice 7422 for the 2026 year of assessment. Taxpayers should note that the extension does not alter the underlying tax liability or the requirement to file accurate returns; it merely extends the administrative window for dispute resolution. SARS encourages taxpayers to use the eFiling platform to submit requests promptly. The automatic assessment regime was introduced to streamline compliance for provisional taxpayers, but it relies on third-party data that may not capture all deductible expenses or income sources. Consequently, many taxpayers receive assessments that overstate taxable income. The extended deadline acknowledges the practical difficulties taxpayers face in gathering supporting documentation within the original timeframe, especially given the complexity of provisional tax calculations and the need to reconcile multiple income streams. Tax practitioners should advise clients to immediately download their automatic assessment notices from eFiling, compare them with their own records, and prepare a detailed reconciliation. Where discrepancies are identified, a formal request for reduced assessment must be submitted via the eFiling “Request for Reduced Assessment” function, accompanied by supporting schedules and evidence. The request must clearly reference the original automatic assessment notice number and the specific line items in dispute. SARS will review the request and issue a revised assessment or a letter of findings. If the taxpayer disagrees with the outcome, the standard objection and appeal procedures under sections 104 and 105 of the Tax Administration Act remain available. It is critical to note that the extension does not suspend the accrual of interest on any outstanding tax debt; interest will continue to run from the original due date until the date of payment. Therefore, taxpayers who anticipate a reduced liability should consider making a provisional payment based on their own calculation to limit interest exposure. The notice also serves as a reminder that the automatic assessment process is not a substitute for filing a complete and accurate tax return. Taxpayers who have not yet submitted their 2026 income tax return should do so without delay, as the automatic assessment is merely a provisional determination.
Key Takeaways
- Extended Review Period: Provisional taxpayers who received an automatic assessment for the 2026 year of assessment now have until 22 January 2027 to request a reduced or additional assessment, providing an additional seven months beyond the original deadline.
- Automatic Assessment Context: The automatic assessments were issued under Notice 7422 (GG 54598, 30 April 2026) which mandated submission of income tax returns for the 2026 year of assessment. Taxpayers who did not submit returns may have been assessed based on available third-party data.
- Compliance Action Required: Affected taxpayers must actively review their automatic assessments and submit a request for reduced or additional assessment via SARS eFiling before the new deadline. Failure to act may result in the automatic assessment becoming final, with potential interest and penalties on any understated tax.
- Interest Implications: The extension does not suspend interest accrual on any tax debt; taxpayers should consider making provisional payments based on their own calculations to limit interest exposure while the request is processed.
- Procedural Rigour: Requests must be submitted through the designated eFiling channel with full supporting documentation. Incomplete submissions will be rejected, and the original assessment will stand.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement