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SARS AUTO-ASSESSMENTS

With modern digital technologies at its disposal, SARS can collect electronic tax data from employers, financial institutions, medical schemes, retirement annuity fund administrators and other 3rd party data providers. As such, it can compile and assess tax submissions with little input from the taxpayer.

SARS announced that, during August, it will assess a large number of taxpayers automatically in this way, reportedly around 3.1 million. They will be notified by SMS and can access the precompiled assessment through eFiling or SARS’ MobiApp. Here, they can review the assessment and click an Accept button to accept the figures, or click an Edit button to amend the information.

FAQs

ERROR CODES

FREQUENTLY ASKED QUESTIONS

Since the rollout of Auto-assessments, many taxpayers have been faced with lots of confusion with many accepting the assessment and later realising that it may have been incorrect.

Amidst the confusion, SARS has put together FAQs to give taxpayers clarity on the process and any other important information.

Our team have selected the top 5 questions based on queries received during this current tax season.

I HAVE RECEIVED AN SMS FROM SARS SAYING I HAVE BEEN AUTO ASSESSED; WHAT SHOULD I DO?
You can accept or edit your return through the SARS digital channels. Should you fail to ensure that your tax return is submitted before the deadline, SARS may raise penalties against you.

ON MY IRP5 MY PENSION CONTRIBUTION SHOWS R375 000, BUT ON THE AUTO-ASSESSMENT, IT SHOWS R350 000. WHY IS THERE A DIFFERENCE IN THE AMOUNTS?
Retirement Fund contributions are capped at R350 000, so even if your contribution was more, it will remain R350 000 on the Auto-Assessment.

HOW LONG WILL IT TAKE TO RECEIVE MY REFUND IF IT SHOWED AN AMOUNT DUE TO ME (MINUS SIGN NEXT TO THE AMOUNT) AFTER I’VE ACCEPTED IT?
For the majority of taxpayers, three working days (72 working hours).

WHAT IS THE TIMEFRAME TO ACCEPT AUTO ASSESSMENT?
You have time to accept the auto assessment until 16 November 2020. An estimated assessment will only be issued after 29 January 2021.

I HAVE RECEIVED AN SMS FROM SARS WITH A NEGATIVE AMOUNT, DOES THIS MEAN I OWE SARS MONEY?
No, a negative amount indicates that a refund is due to you.

ERROR CODES

When a taxpayer submits a return and a lump sum had accrued to the taxpayer during the year, the system may create a rejected return due to various reasons as a result of mismatching information between the IRP5 declared by the taxpayer and the tax directive.

Refer to the code presented to you and the corresponding explanation.

The first code will be returned when you submit your return, the code in brackets will be returned when a tax calculation is requested.

0020 (4478) – IRP5 TAX DIRECTIVE NO. INVALID
Please note that SARS will not process this return. The Tax Directive number captured on the return is incorrect/invalid. Please contact the Fund administrator/Employer to rectify the error. Once the fund/employer has rectified the error, please refresh the IRP5 certificate and try to submit the rectified return.

0021 (4479) – IRP5 L/S ACCRUAL DATE INVALID
Please note that SARS will not process the return. The accrual date on the IRP5 does not correspond to the accrual date on the Tax Directive available to SARS. Contact the Fund administrator/Employer to rectify the error and submit the rectified return.

0022 (4480) – IRP5 L/S SOURCE CODE INVALID
Please note that SARS will not process the return. The Lump Sum source code on the IRP5 does not correspond to the Tax Directive source code available to SARS. Contact the Fund administrator/Employer to rectify the error and submit the rectified return.

0023 (4481) – IRP5 LUMP SUM AMOUNT INVALID
Please note that SARS will not process the return. The Lump Sum amount on the IRP5 does not correspond to the Tax Directive amount available to SARS. Contact the Fund administrator/Employer to rectify the error and submit the rectified return.

0024 (4482) – IRP5 RECEIVED INVALID
Please note that SARS will not process this return. There is a finalised tax directive processed but no lump sum amount is declared on the return. Please contact the Fund administrator/Employer to rectify the error and submit the rectified return.

0025 (4483) – IRP5 CERTIFICATE NUMBER MISSING FOR TAX DIRECTIVE
Please note that SARS will not process the return. There is a finalised tax directive processed but the IRP5 Certificate number is not declared on the return. Please contact the Fund administrator/Employer to rectify the error and resubmit the rectified return.

View the full list of FAQs here.

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SARS AUTO-ASSESSMENTS

FREQUENTLY ASKED QUESTIONS

ERROR CODES

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