THE INCOME TAX RETURN FOR TRUSTS (ITR12T)
- 12 December 2016 - Further enhancements to the Income Tax Return for Companies (ITR14)
SARS introduced enhancements to the Income Tax Return for Companies (ITR14) on 9 December 2016. Read more.
- 12 October 2015 – Changes to the ITR12T form
The form has been amended with effect from 12 October 2015 to include:
- Changes to legislation;
- Previously optional fields and sections have been changed to mandatory; and
- Automated calculations (where applicable).
- 12 October 2015 - From 12 October 2015 SARS implemented system changes which now cater for the proper processing of Collective Investment Scheme (CIS) registrations and VAT Voluntary registrations which made provision for the registration of vendors who have not yet made taxable supplies exceeding R50 000 per year.
- CIS entities will be able to register as either a trust or company for Income Tax purposes
- CIS in securities will be allowed to have any month as their Financial Year End and will no longer be restricted to February as FYE
- Registration rules have been amended to allow CIS in property or outside South Africa to register as companies for Income Tax purposes, and to get a company registration number. Read more.
What is it?
The Income Tax Return for Trusts is called the Income Tax Return for Trust (ITR12T).
When did it come into effect?
The updated form (ITR12T) is available from 12 October 2015.
What are the changes?
- New sections introduced with regards to legislative changes include:
- Taxable income received from Real Estate Investment Trust (REIT)
- Allowable tax deduction for Donations in terms of section 18A to an approved Public Benefit Organisation (PBO)
- Allowable tax deduction for expenditure incurred in exchange for Venture Capital Company (VCC) shares
- Recoupment in respect of VCC shares sold, for which a tax deduction to the trust was previously allowed
- The optional information that changed to mandatory fields are:
- All fields in the Statement of Assets and Liabilities section
- All fields in every section of Local and Foreign Income
- Certain fields in the schedule of local capital gains and losses and schedule of foreign capital gains and losses
- In 2014, for persons who transacted with the trust, only the beneficiary fields were mandatory. Now the details of all persons (individuals/company/trust) that transacted with the trust will be mandatory. 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)
- Auto-calculations were added for:
- Statement of Assets and Liabilities
- Local Income
- Foreign Income
- Schedule of local capital gains and losses and
- Schedule of foreign capital gains and losses
How will I get the ITR12T?
The form (ITR12T) will be available on eFiling
or may be captured at a SARS branch on behalf of the representative/Tax Practitioner. You need to fill in the form before sending it to the branch for capturing.
An example of the ITR12T
is available for downloading. Should you visit a SARS branch for capturing, you’ll need to fill it in before going to the branch. For more information on how to complete ITR12T, click here
Top Tip: Asking for the ITR12T to be posted to you will no longer be an option and trust returns received via post will be rejected.
How to submit the ITR12T?
- Complete and submit ITR12T electronically on eFiling
- Submit ITR12T via a third party independent software vendor which will submit to SARS via eFiling web services
- Visit nearest SARS branch for capturing of ITR12T on SARS system. Capturing of the ITR12T at a SARS branch will only be available. If the number of persons who transacted with the trust is limited to a maximum of 10, or else the trust must register for eFiling