Trusts

• 7 April 2026 – Stakeholder communique: Implementation Date of Administrative Non-Compliance Penalties for Late- or Non-Submission of ITR12T Income Tax Returns for Trusts
  

  Following the stakeholder letter issued on 9 February 2026, the South African Revenue Service (SARS) wishes to update stakeholders on the imposition of non-compliance administrative penalties (admin penalties) for trusts. Feedback received during the public consultation process indicated that, owing to the complexity of trust tax compliance obligations and the related administration, trustees required additional time to regularise their tax affairs. The Commissioner for SARS approved this request, and an additional two months were approved to enable trustees to regularise these matters.

  The imposition of the first admin penalties for tax non-compliance by trusts has been deferred to 4 May 2026, being the first business day of May. Accordingly, no admin penalties will be imposed prior to this date.

  This deferral provides additional time for trustees and their representatives to regularise the required tax affairs, including to submit all outstanding tax returns and to update any other details where applicable.

  Trust Deregistration Process

  If a trust was deregistered with its regulatory authority or no longer meets the requirements to remain registered (non-resident trusts only), a formal deregistration process with SARS must be initiated. These trusts must finalise all outstanding tax obligations before requesting deregistration from income tax.

  The deregistration process includes:

  1. Submitting all outstanding tax returns;
  2. Settling any outstanding tax liabilities; and thereafter
  3. Providing supporting documentation confirming the termination of the trust.
     
     

  How can a trust taxpayer request income tax deregistration?

  • • At a branch: make an appointment through the online booking system on the SARS website to visit a SARS branch.
    • Via e-mail: email [email protected].

• Conclusion

  SARS encourages taxpayers (inclusive of stakeholders) to resolve all outstanding trust tax compliance matters and to submit deregistration requests on time and in accordance with the prescribed requirements.

  Failure to submit tax returns timeously and to deregister trusts for income tax may result in outstanding tax compliance obligations and, once the deferral period has lapsed, the imposition of admin penalties in cases of continued non-compliance.

  If you need assistance with submitting returns/requests or have queries about your trust’s tax compliance status, please contact SARS through our official channels, visit our website, or seek advice from your tax representative or tax practitioner.

• 2 April 2026 – Penalties are being implemented for the non-submission of Income Tax Returns by Trusts

  On 27 March 2026, a public notice was issued listing the non-submission of income tax returns by trusts as an incidence of non-compliance subject to an administrative non-compliance penalty under section 211 of the Tax Administration Act, 2011 (TAA). Administrative penalties may be imposed on taxpayers who fail to comply with an obligation under a tax Act. The penalties are designed to encourage compliance, applied consistently, and may recur monthly until corrected.

  From 4 May 2026 SARS will issue a penalty assessment notice (AP34) to notify taxpayers of administrative non-compliance penalties that have been imposed for non-compliance with regard to outstanding trust income tax returns. The penalty assessment notice will reflect imposed penalties, outstanding income tax returns for which tax periods, and corrective measure to be followed to prevent recurring penalties. Taxpayers are also advised to submit a request for remission if they do not agree with the penalty imposition. This penalty will apply to trusts with outstanding income tax returns (ITR12T) for tax periods from 2024 onwards. For more information, see the updated Guide to submit a dispute via eFiling.

  Kindly note that the previous Guide called ‘How to dispute Administrative Penalties via eFiling’ has been incorporated into the above guide.

  Also see our step-by step video on How to file a Request for Remission for Trust on eFiling.

Registering as a Trust