ALL 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.

I am getting an error message on submission of trust return, “The information provided does not seem to be correct. Please correct. HINT: There must be a corresponding income source code on the return”?
The income source codes selected in the ‘Trust Participant Schedules’ under section ‘Details of Taxable amounts distributed to / vested in beneficiaries or taxable i.t.o. s7 or par. 68 – 72 of the Eighth schedule

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

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).

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.

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.

How do I distribute capital losses in a Trust as a net loss to beneficiaries?
Capital losses may never be attributed to a beneficiary. Both para 80(1) (vesting of asset in resident beneficiary) and para 80(2) (vesting of capital gain in resident beneficiary)