SARS has introduced several important changes for the 2026 Filing Season that affect provisional taxpayers. These changes form part of SARS’s strategy to simplify compliance, improve the taxpayer experience, and make greater use of third-party data and automation. One of the most significant developments is the extension of Auto Assessments to eligible provisional taxpayers.

Change 1: Eligible Provisional Taxpayers May Now Be Auto-Assessed

Historically, Auto Assessments were largely limited to taxpayers with simple tax affairs. For Filing Season 2026, SARS has expanded the programme to include certain provisional taxpayers. Where a provisional taxpayer receives an Auto Assessment and agrees with the outcome, no further action is required. If the taxpayer disagrees with the assessment, they may amend and submit the relevant return by the provisional-taxpayer deadline of 22 January 2027.

This change reflects SARS’s increasing reliance on third-party data from employers, banks, retirement funds, medical schemes, and other institutions to prepare tax assessments automatically. The implication for tax practitioners is that the focus will increasingly shift from manual return preparation to reviewing and validating pre-populated information.

Change 2: Important Filing Dates for Provisional Taxpayers

SARS confirmed the following Filing Season 2026 dates:

• The Auto Assessment period concluded on 12 July 2026.
• Provisional taxpayers who are not auto-assessed may submit returns from 13 July 2026.
• The filing deadline for provisional taxpayers is 22 January 2027.

Tax practitioners should encourage clients who receive Auto Assessments to review them carefully and verify that all sources of income and deductions have been accurately reflected before accepting the assessment.

Change 3: More Pre-Filled Information on Tax Returns

SARS has significantly expanded the amount of information that is pre-populated on the ITR12 return. Some investment income, among other third-party data sources, will already appear on taxpayers’ returns, reducing the need for manual data capture.

This development should reduce administrative effort and improve accuracy. However, taxpayers remain responsible for ensuring that the information reflected on the return is complete and correct.

Change 4: ITR12 Features Affecting Provisional Taxpayers

Several technical enhancements have been introduced to the ITR12 return.

Residency Information

New questions and date fields have been added to help taxpayers correctly declare their tax-residency status. These changes are particularly relevant for individuals who have ceased or resumed South African tax residency.

Medical Aid Selection

The ITR12 now includes a drop-down list of approved medical aid schemes, replacing free-text entries. This change is intended to reduce errors and improve the accuracy of medical tax-credit calculations.

Partnership Expenses

SARS has introduced a new line item within the Local Business and Rental Income sections of the return. This enables taxpayers who participate in partnerships to claim their own qualifying expenses incurred in producing partnership income.

Interest Exemptions and Double Taxation Agreements

SARS has changed the way certain interest exemptions and Double Taxation Agreement (DTA) claims are captured. Taxpayers must now declare these items at the transaction level rather than at the container level. This means that exemptions or treaty benefits must be linked directly to the specific investment account from which the income was received.

Change 5 (Legislative): Section 20A Ring-Fencing of Assessed Losses

An important legislative amendment affecting some provisional taxpayers relates to section 20A of the Income Tax Act.

For years of assessment beginning on or after 1 March 2026, the ring-fencing provisions will apply from a marginal tax rate of 39%, rather than only at the maximum marginal rate of 45%. SARS explains that section 20A will now use the marginal rate at which normal tax becomes payable to determine if assessed losses should be ring-fenced.

This amendment may affect higher-income taxpayers who engage in trades that generate recurring assessed losses.

Change 6: Greater Use of Digital Services (e.g. WhatsApp)

SARS continues to expand its digital service offerings. Taxpayers can now obtain Notices of Assessment (ITA34), Statements of Account, and submit supporting documents via WhatsApp. This service is available to taxpayers who may not regularly use eFiling or email.