A SARS section 95 estimated assessment is an assessment SARS raises from its own third-party data when you don't file a return. It doesn't cancel your duty to file. Under section 95 of the Tax Administration Act, you replace it by submitting a true and full ITR12 within 40 business days. Until SARS declines that return, you can't use the normal objection route.
The 2026 filing season for non-provisional individuals closes on Friday 23 October 2026. The deadline was set by Notice 7422 and confirmed in SARS's media release of 18 June 2026, and SARS has said Saturday 17 October is "the last Saturday" its service centres will open before then. If your ITR12 is still outstanding after the deadline, you face recurring monthly penalties. SARS can also issue an estimate built from data that has no feed for your crypto base cost, your logbook or your home-office costs.
I'm Chris Herbst, Managing Director at CH Consulting. I am a Chartered Business Accountant in Practice, CBAP (CIBA), with the Chartered Institute for Business Accountants, and a General Tax Practitioner, GTP (SAIT), with the South African Institute of Taxation. Our practice files late and replacement ITR12 returns for South African individuals. That work includes rebuilding crypto base cost across exchanges and wallets, and handling the penalty remission requests and disputes that follow.
What is a SARS section 95 estimated assessment?
A SARS section 95 estimated assessment is an original, additional, reduced or jeopardy assessment that SARS issues under section 95 of the Tax Administration Act 28 of 2011, based on information "readily available to it". SARS issues one when you have not filed a return, filed an incorrect one, or did not respond to a request for information.
When can SARS issue one?
Section 95(1) lets SARS estimate your tax in three situations:
- you do not submit a return;
- you submit a return or relevant material that is "incorrect or inadequate"; or
- you do not respond to a request for relevant material under section 46. Our guide on who can respond to a section 46 letter for you covers that route.
What does SARS build the estimate from?
SARS builds it from the data third parties send it. For an individual, that means the employer's IRP5, IT3(b) interest certificates, IT3(c) disposal certificates, IT3(s) tax-free investment certificates, medical scheme and retirement fund contributions, and FATCA and CRS data from offshore institutions. All of these appear on SARS's third-party data page.
Is an auto-assessment the same thing?
An auto-assessment uses the same legal mechanism: SARS's eFiling ITR12 guide calls auto-assessments "Original Assessments based on Estimates". The difference is timing. SARS issues auto-assessments during the season, and the Commissioner extends the replacement window for them by public notice.
What happens if I miss the 23 October 2026 deadline?
If you miss 23 October 2026, your 2026 ITR12 is outstanding. SARS can charge a fixed penalty that recurs every month the return stays outstanding, and it has the power to issue an estimated assessment in place of the return you did not file. The 2026 year of assessment ran from 1 March 2025 to 28 February 2026. Our 2026 filing season deadlines guide lists every date.
How much are the monthly penalties?
SARS's penalty page says amounts run "from R250 up to R16 000 a month" and recur monthly "up to a maximum of 35 months". Since 1 December 2022, one outstanding return is enough to trigger them, under paragraph 2.2 of Notice 1461. The section 211 table sets the monthly amount according to your taxable income for the preceding year. It is R250 up to R250 000, R500 from R250 001 to R500 000, R1 000 from R500 001 to R1 000 000, and R2 000 from R1 000 001 to R5 000 000. Higher bands go up to R16 000. Section 211(2) limits the run to 35 months where SARS has your current address and 47 months where it does not. Our section 211 penalty guide covers the full table.
Will SARS send me an estimate if I don't file?
SARS last said outright that it would send estimated assessments "to taxpayers that have not taken any action" in its release of 13 December 2021. Its 2026 releases say nothing about estimates or penalties. Don't wait to find out. SARS still accepts a late ITR12, and its own advice is to file the outstanding return "to stop further admin penalties". Filing before an estimate arrives also keeps you clear of the section 95(5) objection bar. The numbers involved are large: EWN reported that nearly 700,000 individuals had not filed just before the 2025 deadline.
Can I object to a SARS section 95 estimated assessment?
You can't object to an estimate SARS issued because you did not file, or did not respond to a section 46 request, until SARS has refused your replacement return. Section 95(5) says such an assessment "is only subject to objection and appeal if SARS decides not to make a reduced or additional assessment". Your first step has to be a true and full return under section 95(6).
Why is the RRA01 greyed out on eFiling?
The RRA01 guide (GEN-GEN-56-G01) says you can't use the Request for Reduced Assessment when your latest processed assessment for the year is an estimated assessment. You must submit an original return instead. The RRA01 rests on section 93(1)(d) and (e), and SARS states that it "does not replace the objection and appeal process".
When does the objection clock start?
If SARS declines your section 95(6) return, section 95(8) moves the date of assessment for dispute purposes to "the date of the written notice of the decision". Your objection period runs from that date. Under the Dispute Resolution Rules promulgated on 10 March 2023, Rule 7 gives you 80 business days. Our guide on disputing a 2026 auto-assessment walks through the objection itself.
How long do I have to replace an estimated assessment?
You have 40 business days from the date of the estimated assessment to submit a true and full return under section 95(6). The exception is where the Commissioner has set a longer period by public notice, as Notice 7602 did for 2026 auto-assessments. The table sets out the main scenarios.
- Estimate issued after you did not file: Deadline to replace: 40 business days from assessment date; Status: Section 95(6) window
- Auto-assessment dated on or before 27 August 2026: Deadline to replace: 23 October 2026; Status: Notice 7602
- Auto-assessment dated after 27 August 2026: Deadline to replace: 40 business days from its own date; Status: Standard window
- Provisional taxpayer auto-assessed: Deadline to replace: 22 January 2027; Status: Notice 7958
- Window already missed: Deadline to replace: Extension on reasonable grounds; Status: Senior official's discretion
- SARS declines your return: Deadline to replace: 80 business days from decline notice; Status: Objection available
- No return and no estimate yet: Deadline to replace: File the ITR12 now; Status: Monthly penalty exposure
The provisional taxpayer date comes from Notice 7958 (GG 55438, 25 September 2026), which appears on SARS's public notices page.
What if my auto-assessment is dated after 27 August 2026?
Notice 7602 states that "the extension does not apply if the date of the automatic assessment is after 27 August 2026." If your auto-assessment is dated later than that, your standard 40 business days run from your own assessment date, not from 23 October.
What if I have already missed the 40 business days?
Under section 95(7), a senior SARS official may extend the period if you give reasonable grounds. The extension can't exceed the period in section 99(1) or 40 business days, "whichever is the longest". SARS's eFiling guide adds that the extension date must fall "within 3 years from the Date of Assessment". For a SARS-issued original assessment, the section 99(1) prescription period is three years. Write the request as though a strict test applied. Attach dated evidence of the reason, such as illness, missing exchange records or an IRP5 your employer is still correcting, and submit it together with the full ITR12.
What does an estimated assessment leave out?
An estimated assessment leaves out anything SARS has no third-party feed for. For most individuals, that means crypto base cost, logbook claims against a travel allowance, home-office costs, commission earners' section 11(a) expenses, unreported donations, foreign tax credits and assessed losses carried forward.
Why does crypto base cost go missing?
Your exchange may not issue a tax certificate. In 2021, Luno told ITWeb that it does not issue tax certificates and that its transaction histories are not "SARS-ready". Where a provider does submit an IT3(c), SARS has issued a clarification on Field 100 (Base Cost) for crypto, because providers report differently. CARF took effect on 1 March 2026, so it does not cover the 2026 year of assessment. Our Luno reconciliation guide shows how to rebuild the records.
Which deductions does SARS already have?
SARS receives retirement annuity and medical scheme contribution data from third parties, so an estimate is not necessarily missing every deduction. The ones that go missing are deductions you prove with your own records, such as logbook kilometres and home-office costs.
What if my employer's IRP5 is wrong?
If the IRP5 is wrong, the estimate built on it is wrong too. Your employer has to correct and resubmit it. The bi-annual submission window is open from 1 September to 31 October 2026. Once the corrected IRP5 is in, refresh your data before you file.
How do I replace a SARS section 95 estimated assessment on eFiling?
You replace a SARS section 95 estimated assessment by submitting an original 2026 ITR12 through the Income Tax Work Page on eFiling, completed in full, within the section 95(6) window. Work through these steps in order:
- Confirm what you received. On the Income Tax Work Page, open the 2026 ITA34. Note the date of assessment and count 40 business days from it.
- Get the employer data corrected first. If the IRP5 is wrong, ask your employer to resubmit it in the bi-annual window, then refresh the pre-populated fields.
- Collect the records SARS does not have. You need exchange CSV exports, self-custody wallet records, your logbook, home-office costs, foreign tax documents and the prior-year ITA34 that shows any assessed loss. Our 2026 documents checklist lists the rest.
- Rebuild your crypto position. Calculate base cost under paragraph 32(2) of the Eighth Schedule, using first-in-first-out or specific identification, and apply the same method across all your wallets. Our crypto capital gains guide sets out the calculation.
- Request and complete the original ITR12. If no return is open for 2026, use "Request Return", then complete every section. Don't use the RRA01.
- Attach an extension request if you are late. If the 40 business days have passed, give your reasons and evidence under section 95(7), and keep the requested date within three years of the date of assessment.
- Apply for suspension of payment. If the estimated debt is unpaid, apply under section 164 at the same time as you file.
- Watch for the outcome. If SARS accepts the return, it issues a reduced or additional assessment. If it rejects the return, you get a decline letter and no ITA34. Your 80 business days to object run from the date of that letter.
- Deal with the penalties. Submit a Request for Remission (RFR) once the return is in.
If you would rather someone else handled this, see how to appoint a tax practitioner for your ITR12.
What happens if my true return shows more tax than the estimate?
If your true return shows more income than the estimate, SARS can issue an additional assessment, because section 95(6) allows for both reduced and additional assessments. Crypto gains the estimate never saw are the most common cause.
Will SARS add understatement penalties?
Under section 221, an understatement includes prejudice to SARS from a "failure to submit a return", "an omission from a return" or "an incorrect statement in a return". SARS has not published guidance on how it applies understatement penalties to a section 95(6) return that discloses more than the estimate did. Assume the extra tax carries interest and penalty exposure, and keep records showing you made the disclosure voluntarily and in full.
Should I consider the Voluntary Disclosure Programme?
Take advice on VDP eligibility before you file the replacement return, because filing first can affect your options. SARS has made no statement on whether an estimated assessment affects VDP eligibility. Our VDP guide for undeclared crypto sets out the requirements.
Do I have to pay the estimate before SARS processes my return?
The Tax Administration Laws Amendment Act 4 of 2026 amended section 164. A taxpayer who "requests, or intends to request, a reduced assessment under section 95(6)" can now apply for suspension of payment. Apply when you file. SARS's penalty page warns that if a debt goes unpaid, it "will appoint an agent (such as your employer) to collect the money on its behalf".
What does SARS already hold, and how does a mismatch show up?
SARS already holds your employer, bank, investment, medical scheme, retirement fund, insurance and donation data. It also holds offshore account data through FATCA and CRS, and it can obtain crypto data from exchanges. All of it appears as pre-populated fields on your ITR12 and as lines on your ITA34.
- Employers: IRP5 and IT3(a) data through EMP501 reconciliations. The annual window runs from 1 April to 31 May, and the bi-annual window from 1 September to 31 October.
- Banks and investment platforms: IT3(b) interest, IT3(c) disposals and IT3(s) tax-free investment data.
- Medical schemes and retirement funds: contribution data. These are among the sources SARS lists in its 2 July 2026 release.
- Crypto providers: IT3(c) data where a provider submits it, and targeted information requests. SARS's crypto page lists "a requirement for third-party service providers to submit financial data" among its powers. In 2021, VALR said it was obliged to comply with SARS's section 46 request, according to the ITWeb report above. Under CARF, SARS states that individuals "must continue declaring crypto asset transactions through their normal income tax returns."
A mismatch shows up when your filed figures differ from the pre-populated source-code fields. If you leave a field out and SARS holds the data, your figures and SARS's won't match. If you claim something with no third-party match, such as a logbook claim, expect SARS to ask for supporting documents. Our guide to reading the codes on your ITA34 explains the assessment lines.
What are the most common mistakes with a section 95 estimated assessment?
The most common mistakes are treating the estimate as final, trying the wrong correction route, and filing a replacement return that is incomplete.
Treating the estimate as the end of the matter
Section 95(4) says an estimated assessment does not remove your duty to submit a return. Your failure to file stays on record, and the monthly penalty keeps running until the ITR12 is in.
Trying the RRA01 or an objection first
Both routes are closed while the estimate is your latest assessment. Every business day you spend on them comes out of your 40.
Filing a partial replacement return
SARS's eFiling guide states: "Once the taxpayer receives the reduced or additional assessment, a dispute will not be allowed." Include crypto base cost, travel, home office, foreign tax credits and prior assessed losses the first time.
Using weighted average for crypto
SARS's IT3(c) clarification excludes the weighted average method for crypto, because crypto exchanges are not currently "recognised exchanges". The Draft Guide to the Taxation of Crypto Assets, published on 1 July 2026, is still a draft. Use FIFO or specific identification.
Relying on the 23 October extension for a later auto-assessment
If your auto-assessment is dated after 27 August 2026, your window ends 40 business days after that date. The 23 October extension does not apply to you.
Assuming filing erases earlier penalties
Filing stops new monthly penalties. Penalties already charged stay on your account until you pay them or SARS remits them.
Can I get SARS late submission penalties reversed?
You can ask SARS to remit late submission penalties by submitting a Request for Remission (RFR) on eFiling, giving reasons for the non-compliance, but SARS decides whether to grant it. Under section 217(1), SARS may remit a "first incidence" penalty "up to an amount of R2 000". It does so only if "reasonable grounds for the non-compliance exist" and "the non-compliance in issue has been remedied". That means filing the return before you ask.
Do You Need Help With a Section 95 Estimated Assessment?
If you missed 23 October, have received an estimate, or have crypto records to rebuild before your 40 business days run out, we can prepare the replacement ITR12 and the extension and suspension requests that go with it. Book a call to talk through your own circumstances, or email info@chconsulting.co.za with your questions.
