The South African Revenue Service (SARS) has issued a formal reminder to all taxpayers to thoroughly review and confirm the accuracy of their registered banking information in preparation for the upcoming 2025 tax season. This early warning from SARS aims to prevent a repeat of previous years where thousands of refunds were delayed due to incorrect banking records. This advisory comes as SARS plans to process a substantial number of automatic tax assessments, which rely heavily on up-to-date taxpayer data.
Key Takeaways
- Verify Banking and Contact Details Before 6 July: SARS will begin issuing auto-assessments from 7 July 2025. Taxpayers must confirm that their banking and contact information is accurate by 6 July to avoid refund delays or missed communication.
- Refunds Are Automatic Only If Details Are Correct: Taxpayers who agree with their auto-assessment will receive refunds directly into the registered bank account within 72 hours, but only if those details are valid and up to date.
- Incorrect Details Can Trigger Penalties and Delays: Outdated banking or contact information may lead to missed notices, delayed payments, and administrative penalties. SARS will no longer send printed letters, so digital readiness is essential.
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Large-Scale Auto-Assessments Expected in 2025
As part of its effort to streamline the annual tax filing process, SARS has indicated that a significant volume of returns will be auto-assessed in 2025. To minimise complications or payment delays, taxpayers are encouraged to ensure all personal and banking details are correctly captured within the SARS system. Auto-assessments are intended to simplify the process, but errors in personal information can create significant backlogs and frustrations for both SARS and taxpayers. Doing so will help ensure a smoother, more efficient assessment process.
Auto-Assessment Rollout Begins 7 July
SARS will begin issuing auto-assessments from 7 July 2025. Taxpayers therefore have until 6 July to verify and, if necessary, update their personal information to prevent any disruptions. Once the assessments are underway, there will be limited time to correct inaccuracies without affecting the potential for refunds or resulting in further administrative delays. This cut-off date is particularly important as any changes made after 6 July might not be reflected in time to impact the automatic refund process.
Refunds Paid Automatically If Details Are Valid
For taxpayers who are satisfied with their auto-assessment results, there is no requirement to formally ‘accept’ the assessment. Where a refund is owed, SARS will automatically initiate payment to the bank account currently registered on the taxpayer’s SARS profile. This payment is generally processed within approximately 72 hours, provided that the bank account details are valid and accurately recorded. SARS has emphasised that incorrect details could mean delays stretching into weeks, especially during the peak of tax season when volumes are at their highest.
Incorrect Bank Details Will Delay Refunds
In situations where the banking information is incorrect or outdated at the time the auto-assessment is processed, SARS will be unable to issue any refund. Taxpayers affected by this will be required to contact SARS directly to rectify the issue, which may lead to unnecessary delays and administrative burdens.
In many cases, incorrect details have resulted in bounced refunds, with taxpayers then having to undergo a tedious re-verification process.
SARS Provides Online Access to Assessment Status
SARS has made available a dedicated online resource that allows taxpayers to check the status of their auto-assessments. However, individuals are advised not to access the SARS eFiling platform or the MobiApp until they have received official notification via SMS or email that their assessment is ready for review. Jumping the gun before receiving the official notice may result in confusion or accessing incomplete data, SARS warns.
Steps to Take Upon Receiving an Auto-Assessment Notice
Once notified, taxpayers should promptly log into either SARS eFiling or the SARS MobiApp to view the auto-assessment. All data and supporting information used by SARS to generate the assessment will be visible. This enables taxpayers to confirm whether they are due a refund or owe an amount to SARS.
If a refund is due, and all registered details are accurate, no further action is needed apart from waiting for the amount to reflect in the registered bank account. In the event that a taxpayer owes SARS, payment must be made through eFiling or the MobiApp before the payment due date displayed on the Notice of Assessment (ITA34). SARS has reminded taxpayers that late payments could incur penalties and interest, especially if ignored beyond the grace period.
If a taxpayer disputes the outcome of the auto-assessment, they will be required to complete a full tax return manually via SARS eFiling or the MobiApp. This must be done on or before the relevant deadline, as indicated in the communication received from SARS. Filing a corrected return can take time, so acting swiftly is essential to avoid bottlenecks in the system.
Beyond verifying banking details, taxpayers are also advised to confirm that their contact information is both correct and current. SARS has phased out the use of printed correspondence and now communicates exclusively through electronic channels. This shift makes it vital for taxpayers to ensure they can receive and respond to digital notices without delay. Failure to do so may leave taxpayers unaware of critical notices or deadlines, including audit requests and compliance warnings.
Consequences of Outdated Contact Information
Failure to update contact details can lead to missed SARS correspondence, including notices that are legally time-sensitive. This includes, but is not limited to:
- Notifications of audits or document verification
- Final demands for outstanding payments
- Requests for additional supporting documentation
- Revised assessments or penalties
- Outcomes of disputes and objections
These notifications often come with strict deadlines, and missing even one could result in serious financial or legal consequences. Missing such notifications could lead to enforcement actions or other consequences such as being labelled non-compliant, which may impact the taxpayer’s future dealings with SARS.
Steps to Update Details on SARS eFiling
To prevent such risks, SARS has urged taxpayers to ensure that the following information is kept up to date:
- An active email address that is monitored regularly
- A working mobile number to receive SMS alerts
- Accurate contact information for the registered representative of a business, if applicable
- Routine access to either SARS eFiling or the MobiApp
To check or amend these details, taxpayers can log in to www.sarsefiling.co.za, navigate to the ‘SARS Registered Details’ section, and click on ‘Maintain SARS Registered Details’. From there, users can choose the relevant category to update, such as:
- Addresses
- Bank Account Details
- Email Addresses
- Trading Name Information
- Security Settings for eFiling access
Taxpayers are advised to double-check the information entered for accuracy before submitting changes, as incorrect updates may worsen the situation rather than resolve it.
Final Step: Submitting Changes Correctly
After making changes to any of the above fields, taxpayers must ensure that they click on the ‘Done’ button and then select ‘Submit’ to confirm and apply the updates. Failure to submit the changes properly will result in the system retaining the outdated information. This is a common mistake and one of the top reasons SARS systems show no record of attempted updates.
Conclusion
As the 2025 tax season approaches, SARS is placing strong emphasis on the accuracy of taxpayer records to support a smooth auto-assessment process. Taxpayers must act quickly to update their banking and contact information before the 6 July deadline, or risk delays in receiving refunds and potential compliance issues. With SARS shifting entirely to digital communication, ensuring reliable access to eFiling and the MobiApp has never been more critical.
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