Trusts

• 26 June 2025 – Changes for 2025 Filing Season
  
  

  The 2025 Filing Season for individuals will open on 7 July 2025 and covers these major dates:

  • Auto Assessment notices: 7 July 2025 to 20 July 2025
  • Individual taxpayers: 21 July 2025 to 20 October 2025
  • Provisional taxpayers: 21 July 2025 to 19 January 2026

  Trusts can start filing on 19 September 2025 and must file on or before 19 January 2026.

  Below are updates for the upcoming Personal Income Tax Season:

  Certain Provisional Taxpayers Can Participate in Auto Assessment

  For the 2025 Tax Season, SARS will identify eligible provisional taxpayers and invite them to express their interest to receive an Auto Assessment. Eligible and interested provisional taxpayers will be included in the Auto Assessment population.

  Section 6quat

  With effect from 1 March 2025, section 6quat of the Income Tax Act (the ITA) has been amended for taxpayers to fully use foreign tax credits for the taxes paid on capital gains in the foreign jurisdiction to the same extent in relation to the taxes paid in South Africa on the same gains.

  From the 2025 tax year, SARS will maintain any unused foreign tax credits to be carried forward automatically in the subsequent years of assessment, up to six years.

  Section 11(nA) and 11(nB)

  With effect from 1 March 2025, employers must report sections 11(nA) and 11(nB) of the ITA details on the IRP5/IT3(a) certificate. These changes will affect the ITR12 tax return so that section 11(nA) source code 4042 will be reflected on the IRP5/IT3(a) tax certificate, and a new source code 4058 relating to section 11(nB) will be reflected in the “Other Deduction” field.

  Definition of “Provisional Taxpayer” in Paragraph 1 of the Fourth Schedule

  With effect from 1 March 2025, a labour broker who received an approved certificate of exemption will be included in the definition of provisional taxpayer. This means that these labour brokers must comply with provisional taxpayer requirements such as submitting IRP6 tax returns.

  Section 12H Learnership Agreement

  The section 12H (of the ITA) Learnership Agreement termination date has been extended from 1 April 2024 to 31 March 2027.

  Allowable Interest Expenses on Foreign Interest in Terms of Practice Note 31

  The “Allowable interest expenses incurred in the production of interest received” line item has been introduced within the “Foreign Interest” container of the ITR tax return to align with Practice Note 31.

  Backdated (Antedated) Salaries and Pensions

  New source code 3623 and 3673 has been introduced to the ITR12 tax return for backdated (antedated) salaries and pensions.

  Section 10(1)(i) interest exemption

  For section 10(1)(i) (of the ITA) exemption to be applied correctly, the executor will be able to declare the “Interest Earned Date From” and “Interest Earned Date To” within the investment-income container on the deceased estate tax return where such date exceeds the year of assessment during which the taxpayer became deceased.

  Exempt Local and Foreign Dividends

  Two new source codes have been introduced for local (source code 4306) and foreign (source code 4307) dividends within the non-taxable container on the ITR12 tax return.

  Section 9H Change of Residence

  From the 2025 tax year, RSA tax-resident and non-resident taxpayers will be presented with a specific ITR12 and IRP6 tax-return type based on taxpayer registration status available with SARS, i.e.:

  ITR12

  • RSA tax resident will be presented with the resident wizard questionnaire.
  • Non-resident will be presented with the non-resident wizard questionnaire.
  • Taxpayers who ceased RSA tax residency during the year of assessment will be presented with the resident and non-resident questionnaire.

  IRP6

  • RSA tax resident will be presented with the resident return.
  • Non-resident will be presented with the non-resident return.
  • Taxpayers who ceased RSA tax residency during the year of assessment will be presented with resident and non-resident return.

  Trust Income Changes

  From the 2025 tax year, SARS will apply a 50% communal estate where income from a trust is declared, and the taxpayer is married in community of property.

  Unused Balances such as Section 11F, Section 18A, Section 20

  SARS will print the note given below on the ITA34, in instances where unused balances are not automatically carried over to the subsequent year of assessment:

  SARS did not consider your carryover/brought forward amount(s) as the current return is under the verification review. SARS will initiate the amendment of the return to take the carryover/brought forward amount into account once the verification case is finalised.

  Enhancement of Banking Details

  To enhance user experience with the Registration, Amendments, and Verification Form (RAV01) form and the ITR12 tax return, taxpayers will be presented with a list of their verified banking details available to SARS. Taxpayers must select this information when updating their bank-account details rather than manually capturing them.

  Reinstatement of RSA Tax Residency

  The Registration, Amendments, and Verification Form (RAV01) form will enable a taxpayer who ceased to be an RSA tax resident in the past to indicate the reinstated date on the “Reinstatement Date of RSA Tax Residency” line item.

• 26 May 2025 – Trust Registration: Online Booking Appointment Workaround
  
  

  Taxpayers face challenges when scheduling online appointments for Tax number registration, as entering the Tax number is a required step in the booking purpose.

  As workaround, the main Trustee or any Trustee may use their Personal Tax number to complete the online booking process for Trust registration.

• 17 March 2025 – Appointment of a Corporate Entity as a trustee of a Trust and/or executor in a Deceased Estate

The Public Officers and Representatives policy has been updated to allow the nominated new representative still to be authorised by the MoHC to carry out tax administrative duties on behalf of the Corporate Entity either as trustee or executor, pending the formal amendment of the LoA or LoE. The following conditions must be met:

1. 1. Submission of the Power of Attorney (POA), Signed Board Resolution and Affidavit clearly indicating that the succeeding representative will represent the Corporate Entity as trustee or executor.
      
      
   2. An undertaking that the amended LoA or LoE will be submitted to SARS on receipt thereof from the MoHC.
      
      

• 17 February 2025 – Suspension of Payment for Trusts

SARS is modernising the Trust suspension of payment (SOP) process from manual to digital on eFiling, making it easier and more efficient for Trusts and their representatives to manage their tax obligations. This change aligns with our commitment to provide modern, digital services that simplify compliance. Taxpayers and tax practitioners are now able to submit requests for SOP on Section 95(1)(c) and disputed Trust debt.

For more information see the Guide to submit a dispute via eFiling.

• 14 November 2024 – Webinar on Compliance Requirements for Trusts

  SARS held a webinar on Trusts and Tax Compliance to help Trust taxpayers fulfil their tax obligations and remain tax compliant. This is in line with the organisation’s strategic objectives of providing clarity and certainty and making it easy for taxpayers to comply with their tax obligations.

  The webinar included relevant compliance information, as well as discussions on various topics in the Trust tax environment.

  With the webinar, the Trust Unit aimed to:

  • Explain the different types of Trusts.
  • Convey the compliance requirements across the Trust value chain, namely, registration, filing, declaration, payment and consequences of non-compliance.
  • Educate Trust taxpayers about Trusts’ obligations.

  If you missed the webinar, view the presentation or see the recording on the SARS YouTube TV channel.

You can also view the informative videos on Trusts below:

• • Third party data return for Trusts explained
  • What is a passive Trust
  • Trust and beneficial ownership

• 8 October 2024 – New step-by-step video for Trusts

Watch our easy tutorial video on Third-Party Data return (IT3(t)) for Trusts explained.

• 30 September 2024 – New FAQs for Trusts

• 16 September 2024 – Trust Verification Enhancement

SARS is in the process of enhancing the letters that it issues to taxpayers relating to the specific supporting documents that are required when they have been selected for verification. For the Revised Estimated Assessment:

• • If the ITR12T return you submit is routed for verification and there is no response to the request for supporting documents within the required period (after delivery of more than one request for such material), SARS may make a revised estimated assessment in terms of section 95(1)(c) of the Tax Administration Act. A notice of assessment (ITA34) will be issued, to notify you of the reduced/additional estimated assessment and the reason for the adjusted assessment.
  • You will have the option of submitting the outstanding supporting documents to SARS within 40 business days from the date of adjusted assessment, under section 95(6) of the Tax Administration Act. However, you may provide SARS with reasonable grounds and request an extension of this period, in terms of section 95(7) of the Tax Administration Act:
    • You can submit supporting documents via eFiling, the SARS Online Query System (online service), or by booking an appointment at a SARS branch.
    • If you do not provide the supporting documents to SARS within the required period, the estimated assessment will become final and not subject to objection or appeal.
• 16 September 2024 – The date for Trusts filing season is 16 September 2024 to 20 January 2025 for provisional and non-provisional taxpayers

The following enhancements were implemented based on legal and form changes:

• • Enhanced deduction for certain machinery, plant, implements, utensils, and articles used in renewable energy production to increase the appeal of the tax incentive by temporarily enhancing the current renewable energy tax incentive in section 12B of the Income Tax Act to encourage greater private investment in renewable energy.
  • Urban Development Zone (UDZ): The tax incentive’s sunset date has been extended by two years, from 31 March 2023 to 31 March 2025.
  • Loans, advances, or credit granted to Trusts by connected persons: The exclusion for acquiring a primary residence has been clarified, including funding for improvements to the residence. The limitations regarding the land on which the primary residence is located now also apply.
  • Public Officer: A new question has been added to the form wizard to confirm that the person appointed as a trustee has not been disqualified.
  • Donations: The donations questions have been updated to allow the taxpayer to enter up to 20 number of approved organisations, that the Trust donates to.
  • Request for Reduced Assessment (RRA02): A new feature has been introduced to manage requests for reduced assessments for Trusts under section 93 of the Tax Administration Act (TAA). Taxpayers must complete the Request for Reduced Assessment (RRA02) form, which will generate a case to determine whether they qualify for a reduced assessment.
  • Beneficial Ownership: Clarifications have been added to the Beneficial Ownership section to assist in completing information for unnamed beneficiaries.

See the updated Income Tax Return for Trusts as an example – ITR12T prototype.

The following guides were updated:

• • • IT-AE-37-G02 – Step by Step Guide to complete your Trust Return via eFiling – External Guide
    • GEN-GEN-56-G02 – Submit Request for Reduced Assessment RRA02 via eFiling for Company or Trust – External Guide
    • IT-AE-36-G02 – Comprehensive Guide to the Income Tax Return for Trusts – External Guide
• 13 September 2024 – Trust filing season: form and system changes to be introduced from 16 September 2024

  SARS is making it easier to file Income Tax Returns for Trusts (ITR12T). The enhancements to SARS systems foster clarity and certainty, making it easier for taxpayers to comply with their tax obligations. The annual notice, issued by the Commissioner, requires of ALL Trusts to submit an ITR12T. The representative taxpayers of Trusts (trustees) must ensure that they comply.

From 16 September 2024, SARS will change some aspects of the Trust Income Tax Return. The changes include:

• • Section 12BA of the Income Tax Act 58 of 1962: Enhanced Deduction for Certain Machinery, Plant, Implements, Utensils, and Articles Used in the Production of Renewable Energy:
    • To encourage greater private investment in renewable energy, SARS has temporarily made the renewable-energy tax incentive available in section 12B of the Income Tax Act more attractive.
  • Section 13quat of the Income Tax Act 58 of 1962: Urban Development Zone (UDZ)
    • SARS extended the tax incentive for two years from 31 March 2023 to 31 March 2025.
  • Section 7C of the Income Tax Act 58 of 1962: Loans, Advances, or Credit Granted to Trusts by a Connected Person
    • The exclusion for the acquisition of a primary residence is clarified and includes funding of improvements to the primary residence. The limitations in paragraph 46 relating to the land on which the primary residence is situated apply.
  • Section 246 of Tax Administration Act No. 28 of 2011: Public Officer
    • A new question has been added to the form wizard to confirm that the person appointed as a trustee has not been disqualified.
  • Section 18A of Income Tax Act 58 of 1962: Donations
    • The questions about donations have been updated to allow the taxpayer to enter up to 20 approved organisations to which the Trust donates.
  • Section 93 Reduced Assessment: Request for Reduced Assessment (RRA02)
    • A new functionality has been introduced to manage requests for reduced assessments for Trusts under s93 of the Tax Administration Act (TAA). To request a reduced assessment, taxpayers should complete the Request for Reduced Assessment (RRA02) form. A case will then be created to assess if the taxpayer qualifies for a reduced assessment under s93(1)(d) or s93(1)(e).
  • Beneficial Ownership
    • The Beneficial Ownership section has been clarified to help taxpayers complete the information for unnamed beneficiaries.
  • Other Enhancements to the Trust Return (ITR12T)
    • Previously populated Beneficial Ownership information will be pre-populated from the Beneficial Ownership data provided in the 2023 year of assessment. The submitter must confirm that the information is correct, even if no amendments were made.

Managing Tax Compliance Matters

Trusts are included in the definition of a “person” in terms of the Income Tax Act, 1962 (ITA). Therefore, the representative taxpayer (trustee/s) must register all Trusts for income tax.

The representative taxpayer (the trustee/s of a Trust) or the appointed tax practitioner MUST file an ITR12T every year in terms of the annual notice and during the Trust return-filing period.

The filing period for Trusts, whether provisional or non-provisional, opens on 16 September 2024 and closes on 20 January 2025. In their Income Tax Returns, the beneficiaries and donors of a Trust (where deeming provisions apply) must declare their income that was vested in a beneficiary by the Trust during the year of assessment.

From the 2023 year of assessment, all mandatory supporting documents must be uploaded and submitted with the Trust’s tax return. This includes the Trust instrument, Annual Financial Statements, and resolutions/minutes of trustee meetings. The requirements will vary according to the Trust type. (Use the drop-down menu on SARS eFiling to check the required supporting documents.)

We Have Made It Easier for You

• • The quick and convenient way to obtain and file an ITR12T is to register as an eFiler on SARS eFiling, request the return, and then customise it by completing the questions on the first page (wizard) of the return.
  • To register a new Trust for income tax and submit supporting documents, use our online platforms by accessing SARS Online Trust Registration.

• 3 June 2024 – 2024 Trusts Filing Season

The date for Trusts filing season is 16 September 2024 to 20 January 2025 for provisional and non-provisional taxpayers. The annual notice, issued by the Commissioner, requires of all Trusts to submit a Trust tax return. It is thus imperative that all taxpayers of Trusts (trustees) ensure compliance in this regard.

• 7 May 2024 – Dispute Resolution for Trusts: Enhancements

An essential part of the delivery of the SARS Vision 2024 is the organisation’s digital platforms and technology infrastructure. As such, on 20 April 2024, SARS successfully released the system enhancements to improve its efficiency and effectiveness in resolving Trust tax disputes. These enhancements will aid in providing clarity and certainty and make it easy for taxpayers and traders to comply with their obligations.

An automated process for Trust taxpayers was introduced on eFiling during April 2024 to electronically submit documentation to lodge a dispute via a fully guided process. This applies to the following transactions:

• • Submission of Request for Reasons;
  • Request for Remission (RFR);
  • Notice of Objection; and
  • Notice of Appeal.
• 4 April 2024 – Third Party Data Annual Submission

A reminder that the SARS Third Party Data Annual Submissions opened on 1 April 2024 and closing on 31 May 2024 with the exception of the IT3(t) that will remain open until 30 September 2024. Third parties must submit accurate and complete data for the entire period of 1 March 2023 – 29 February 2024.

Third Parties (banks, medical schemes, fund administrators, section 18A approved institutions among others.) must, by law, send data to SARS via a return. They must include information such as:

• • savings account interest;
  • medical scheme contributions;
  • withholding tax on interest;
  • dividends tax;
  • medical scheme contributions, and insurance payments; or
  • IT3 data submissions: IT3(b), IT3(c), IT3(d), IT3(e), IT3(s) and, *IT3(t).

 * The closing date for IT3(t) submissions is 30 September 2024.

See the Business requirement specifications and submission dates table on the Third Party Data platform webpage.

Third Party data providers can submit data to SARS using these three electronic options:

• • • eFiling (via a data submission form with a limited volume);
    • Connect: Direct® (Unlimited); or
    • Secured File Gateway [HTTPS] (for files smaller than 10MB).

To ensure a successful submission to use and activate these channels, you must be registered with eFiling.

• 15 September 2023 – Enhancements to Trust Beneficial Ownership information
  

SARS aims to record all beneficial owners of  Trust taxpayers to comply with the Financial Action Task Force (FATF) requirements. SARS currently collects Beneficial Ownership information during the registration process (via SOQS or manual registration at a branch) or during the filing season submission of a tax return (ITR12T). In this regard, certain information must be submitted via eFiling. These documents may include, but are not necessarily limited to, the following:

• • An organogram, illustrative, or schematic diagram depicting effective control of the Trust. Where the Beneficial Ownership is in the form of other legal arrangements or legal entities, this should be provided in a separate attachment;
  • An Excel spreadsheet containing the above information; or
  • Such other document(s), that will provide further detail on Beneficial Ownership in relation to the Trust.

When capturing the Beneficial Ownership information, it is mandatory for the current year’s return that at least one document be submitted that relates to Beneficial Ownership information. In the event that there are more than 20 beneficial owners, the taxpayer must upload a supporting document that reflects the additional beneficial owner(s).

Please note: A function is available on eFiling to upload the supporting schedules.

•  1 August 2023 – Update on the distribution of funds to non-resident Trusts by resident Trusts

It has been the practice of SARS not to approve the release of funds when resident Trusts make distributions to non-resident Trusts. Following queries in this regard, SARS herewith clarifies its stance on the matter and confirms that it will consider approval for the release of funds/amounts distributed to non-resident Trusts, subject to certain requirements having been met. The process required to obtain the necessary approval is to apply for a manual letter of compliance at SARS by emailing [email protected].

SARS has taken note of the fact that the SARB has relaxed certain exchange control requirements but has decided, based on the risks involved, to introduce the above-mentioned requirement to mitigate the risks.

SARS will perform verification processes to ensure that strict interpretation of the relevant sections of the Act are complied with. Note that the non-resident Trust must be a beneficiary of the resident Trust, and the distribution will be considered by SARS only if it complies with the terms and conditions in the Trust instrument of the resident Trust.

SARS will allow such distributions only if the resident Trust demonstrates that all tax liabilities in respect of the distribution were or will be settled.

Also see the Supporting Documents for Approval of International Transfers (AIT) webpage.