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
What is the difference between a contribution/donation/distribution for the purpose of the Trust return?
Guidelines in respect of declaring contributions/donations/distributions in the Trust return:
•A contribution to a trust is normally made by the donor/founder/ settlor of the trust
The trust income tax return refers to disclosure in respect of persons/beneficiaries – what types of ‘persons’ are envisaged?
Persons as per the definition of the Income Tax Act include individuals, companies and trusts.
Disclosure of distribution to beneficiary – will it pull through automatically to beneficiary’s Trust return or will one still need to complete this? If so, what will happen if the beneficiary completes his/her personal income tax return
The distribution does not automatically display on the ITR12 of the beneficiary. It does not matter if the beneficiary already submitted an ITR12.
Does SARS differentiate between a loan and a debtor or creditor relationship in terms of disclosure for the Trust return?
How/where does one disclose dividend expenses on the trust return?
Dividend expenses are disallowed in terms of the Income Tax Act and therefore need not be disclosed on the ITR12T.
In the beneficiary section, the REITs source code of 4238 is rejected. Should source code 4212 be utilised instead? Please advise as to the alternatives.
It will be addressed in a subsequent release of the trust return. In the meantime, source code 4212 can be selected.
What "maturity date" and "repayment periods" do taxpayers enter for loans repayable on demand?
The maturity date can be left empty (it is an optional field) for a loan repayable on demand and the taxpayer can enter a zero for the repayment periods (indicating that repayment period is not applicable).
How does one submit a Trust return where the tax practitioner field was accidently typed in, but there is no tax practitioner - the form will not allow the field to be blank there-after.
The user must go back to “Trust Return Information” and answer “No” to the wizard question “Is the declaration made by a tax practitioner?”
Where do I update public officer, representative details, banking and other trust registration details on ITR12T?
Referring to the comprehensive guide for trusts, for update of banking, contact or trustee details of the trust:
If the trust is a registered eFiler, click on “Maintain Legal Entity Details” to amend the banking, contact and trustee details.
If the trust is a partner in a JV partnership which is not tax registered, must the Trust return show a breakdown of all the assets and liabilities, as opposed to reflecting one total investment amount in the partnership?
Every item in the balance sheet must be completed as per the level of detail / breakdown requested on the ITR12T.
Does every transaction include transactions with suppliers for trading trust?
Transaction details for a trading trust are reflected under the container “Local Business and Trading Income (excluding Rental and Farming Income)”
The details of participants in trust transactions are restricted to
What about Trust returns that have been populated on the "old" format but not yet submitted. Will one have to redo that on the new form?
If the last submission of the return was completed in the ITR12T version of the form (implemented in 2014), all the information will be pre-populated on the Trust return.
Are all the fields mandatory to be completed in the details of loans granted or received to the trust?
No, the maturity date of the loan is an optional field.
In what format must the Public Benefit Organisation reference number be submitted on the ITR12T?
The format of the Public Benefit Organisation reference number must be alphanumeric only, i.e. any forward slashes (“/”) or other special characters must be excluded.