Rapid Disbursement of Funds in South Africa: SARS Distributes ZAR 10.6 Billion in Three Short Days, Thanks to AI Technology
South Africa's Revenue Service (SARS) is transforming public service delivery with the help of artificial intelligence (AI) and machine learning, aiming to make tax services so efficient, secure, and seamless that they become no service at all.
This technological advancement is evident in SARS' AI-led Auto Assessment programme, which has significantly impacted tax collection and service delivery. The programme auto-assesses millions of taxpayers using integrated third-party data, such as from employers, banks, and medical schemes, without taxpayer input. In 2025, 5.8 million taxpayers received auto-assessments, up from 5 million in 2024, with 99.6% of these assessments remaining unchanged by taxpayers, indicating high accuracy and trust in the AI system.
Refunds, too, have been accelerated, with R10.6 billion worth being paid out within 72 hours, ahead of the manual filing season. Refunds above R100 will be automatically processed into verified bank accounts.
SARS is also boosting tax collection efficiency by actively pursuing advanced AI capabilities, including "digital twinning" and machine learning models that mimic human decision logic. These AI systems integrate structured and unstructured data and operate securely within regulatory constraints. The modernization effort, part of SARS’s plan to become a “SMART Modern SARS” by 2030, aims to close the tax gap and improve tax compliance through risk detection and automation.
To support this digital transformation, SARS has allocated a substantial budget of R7.5 billion in the medium term, with R3 billion earmarked for technology upgrades. The goal is an intelligent tax and customs administration platform that embeds data science and AI throughout its operations to transform tax service delivery and administration.
Edward Kieswetter, Commissioner of SARS, encourages taxpayers to use digital channels instead of visiting service centres. However, SARS reminds users to guard against phishing scams and protect their login credentials. The tax authority also emphasises that it will never ask taxpayers to click on a link to interact.
As SARS starts its Filing Season for those not auto-assessed from Monday, 21 July, it is crucial for taxpayers who owe SARS to settle their balances or make payment arrangements to avoid penalties.
This AI-driven revolution at SARS marks a significant step towards a modernized, efficient tax system in South Africa, streamlining tax processing, accelerating refunds, and enhancing compliance management.
The integration of artificial intelligence and machine learning in SARS' operations is not only streamlining tax processing but also boosting finance management, as demonstrated by the Auto Assessment programme and the accelerated refunds system. Furthermore, SARS' investment in advanced technology, including AI systems such as digital twinning and machine learning models, aims to improve business efficiency, close the tax gap, and enhance artificial-intelligence capabilities within the tax authority.
