THE INCOME TAX RETURN FOR TRUSTS (ITR12T)

 What's New?

  • 18 April 2016 - Enhancements to the Income Tax Return for Companies (ITR14)
    As part of the continued process to maintain high levels of SARS efficiency and compliance, further enhancements  will be introduced to the Income Tax Return for Companies (ITR14) from 18 April 2016.
    Click here to 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

 Need help?

Last Updated: 18/04/2016 8:32 AM     print this page
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 Top FAQs

​​How is income on a trust taxed?
A trust is taxed at 40%, but a special trust is taxed at a sliding scale from 18% to 40%. A Special ‘Type A Trust’ should apply at the SARS branch for classification as it qualifies for certain relief from Capital Gains Tax.

When selecting No to the first question “Have the banking, contact and trustee details been confirmed and verified” on the Income Tax Return for Trust (ITR12T), I am unable to continue filling in the ITR12T?
The registered details of the trust must first be confirmed, in order to complete the ITR12T. To do this either:

When must an income tax reference number be filled in on the Income Tax Return for Trust (ITR12T) for a beneficiary?
An income tax reference number must be filled for a Trust/Company that is a beneficary. The income tax reference number for an individual is optional, as in some cases a tax reference number isn't available.

What are the channels to submit my ITR12T return?
You can submit your ITR12T return via one of the following channels:- eFiling if you are a registered eFiler. :-The drop boxes at the SARS branches where the completed return can

What supporting documents are required for the number of persons to whom donations/contributions/loans were made?
SARS will advise in the letter issued to the taxpayer which supporting documents are required for verification by SARS. As a guideline SARS will request documents that prove the validity of these transactions, but there is no specific