ENHANCEMENTS TO THE INCOME TAX RETURN FOR TRUSTS (ITR12T)
During the 2014 tax year, SARS introduced a modernised Income Tax Return for Trusts. The ITR12T is now an interactive return that allows you to navigate from different menu items.
The contents of the return are fully customisable based on answers to certain questions presented to you for completion.
The enhanced form is currently being tested by members of the industry. This testing phase started on 28 August 2015 and will be concluded on 23 September 2015. The findings of the testing phase will be used to enhance the usability of the ITR12T.
For the 2015 tax year, SARS will introduce further enhancements to the ITR12T.
The main features of the enhanced return for 2015 will be as follows:
- Legislative changes as per the 2015/2016 Budget speech will be implemented. In 2014 most of the fields that were added to the modernised ITR12T were optional for completion. From the 2015 tax year, these fields will become mandatory for completion.
- Where applicable, auto-calculations will be added to the return.
- In 2014, only the details of beneficiaries who transacted with the trust were mandatory for completion. From the 2015 tax year the details of all persons (individuals/company/trust) that transacted with the trust will be mandatory.
- Full details of all parties contributing funds, assets, etc. into the trust will need to be provided as well as details of the actual transactions made.
- Full details of any party benefitting in any way from the trust as well as details of the benefits received or enjoyed will need to be provided for every beneficiary.
What this means for you:
- These changes will ensure that accurate and complete information is submitted to SARS which then enables SARS to issue the trust with a correct tax assessment.
- If 50 or less persons transacted with the trust, the details of every person and the related transactions must be provided.
- If more than 50 persons transacted with the trust, then the consolidated details of all the transactions must be provided as well as the details of every person where the aggregate of the transactions were in excess of R500 000 (limited to the top 50 persons based on aggregated transactional value).
- Provision will be made for disclosure of taxable income received from a Real Estate Investment Trust (REIT) as per section 25BB of the Income Tax Act.
- Provision will be made for separate disclosure of donations allowable as a tax deduction in terms of section 18A to an approved Public Benefit Organisation.
- Provision will be made for disclosure of the allowable tax deduction in respect of expenditure incurred in exchange for venture capital company shares deduction in terms of section 12J of the Income Tax Act. Provision will also be made for the taxpayer to declare a recoupment of these shares within a five year period which is taxable income in terms of section 12 J of the Income Tax Act.
- Additional fields that were added to the ITR12T during the 2014 tax year will now become mandatory for completion. This means that the details of all income fields as well as the statement of assets and liabilities are now mandatory for completion.
Supporting documents and additional information
To complete the Income Tax Return for Trusts (ITR12T) easily, the following documents which are applicable to the trust must be on hand if you are eFiling or with you if you are filing at a SARS branch:
- Financial statements and/or administration deductions
- All certificates and documents relating to income and deductions
- Proof in relation to any tax credits claimed
- Particulars of assets and liabilities.
Remember to keep all your supporting documents for five years; SARS may request the documents if verification is required.
The following schedules will have to be completed, where applicable, as you will be required to upload these in respect of your ITR12T submission. You will be able to upload the required supporting documents via eFiling by clicking on the “Upload supporting documents” link at the time of filing: