Trusts

• 9 February 2026 – Final demand issued for annual income tax returns for Trusts 

In an effort to increase the compliance levels of trusts, SARS has issued final demands to trusts who did not submit an annual tax return for the 2024 and 2025 years of assessment. In terms of section 210(2) of the Tax Administration Act, SARS will shortly issue the related public notice for the imposition of administrative non-compliance penalties for trusts.  It is important that those in receipt of such final demands as referred to above, take steps to correct the non-filing of the annual income tax returns within the period before the administrative penalties will be raised. SARS notes that, subsequent to the issuance of the final demand, several trusts have already taken steps towards improving their tax compliance. SARS supports and appreciates these efforts.

It is reiterated that all trusts, whether economically active or passive, are required to submit annual income tax returns in accordance with the requirements set out in the public notice. This obligation is an operation of law and is applicable to every registered resident trust (without exception) and certain qualifying non-resident trusts.

SARS emphasises that the responsibility for obtaining, maintaining, and updating accurate trust information rests exclusively with the trustees. This includes the initiation of de-registration processes for trusts that meet the applicable criteria. The trustees must undertake these actions for compliance with statutory requirements and adherence to proper governance practices. This will assist SARS to ensure that the trust tax register is up to date.

Trustees bear sole responsibility for ensuring that all trust information reflected on the SARS Registration, Amendments and Verification (RAV) system is up to date and properly maintained.

Stay compliant, avoid penalties and file now via eFiling!

• 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.

You can also view the informative videos on Trusts below:

1. 1. Webinar on Compliance Requirements for Trusts 
   2. Third party data return for Trusts explained
   3. What is a passive Trust
   4. Trust and beneficial ownership
      
      

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 20 September 2025 and closes on 19 January 2026. 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.