Trust Frequently Asked Questions (FAQs)

The Income Tax Return for Trusts is called the ITR12T and must be submitted annually by trusts. In addition, trusts may be required to submit an IT3(t) third-party data return, which reports all vestings, distributions, and the demographic details of beneficiaries.

Where a trust is a provisional taxpayer, it must also submit IRP6 provisional tax returns during the year and make the applicable provisional tax payments by the prescribed deadlines.

Yes. The annual public notice, issued by the Commissioner, requires all trusts to submit a trust tax return.

This means every registered trust—whether active or passive (“dormant”)—must file an annual income tax return (ITR12T). This includes:

• Family trusts
• Testamentary trusts
• Special trusts (Type (a) and (b))
• Business or trading trusts
• Vested and discretionary trusts
• Bewind trust

Even if the trust has no economic activity, submission is still mandatory.

A non-resident or foreign trust is also required to submit a return if, during that year of assessment, it:

• carried on a trade through a permanent establishment in the Republic;
• derived income from a source in the Republic; or
• derived any capital gain or capital loss from the disposal of an asset to which the Eighth Schedule to the Income Tax Act applies.

You can submit your ITR12T return via one of the following channels:

1. eFiling, if the trust is registered for eFiling.
2. At the nearest SARS branch, by booking an appointment.

Please note that, for branch-assisted capture, all the required return information must be prepared in advance using a copy of the ITR12T available on eFiling. SARS officials will not assist with the interpretation of the financial statements.  

Branch-assisted capture may be available, by appointment, where a trust has 10 or fewer trust participants and meets the applicable SARS requirements.

A trust that has more than 10 trust participants who transacted with the trust during the year of assessment in any of the transactions listed below will have to register for eFiling and cannot submit at a SARS branch:

• Taxable on income distributed to/vested in beneficiaries or taxable in terms of section 7 or paragraph 68 – 72 of the Eighth schedule to the Income Tax Act, 58 of 1962.
• Received a distribution/vesting of non-taxable income from this trust.
• Received a distribution/vesting of capital or assets from this trust.
• Has outstanding loan(s) granted to this trust.
• Holds outstanding loan(s) from this trust.
• Made/Received donation(s)/contribution(s) to/from this trust.
• Received distributions from other trusts or foundations.
• Received refund(s) on contribution(s) made to this trust.

Granted the right of use of asset(s) retained in this trust.

Yes. Submitting the IRP6 provisional tax return does not exempt a trust from submitting the ITR12T annual income tax return.

Trustees and representative taxpayers should refer to the Comprehensive Guide to the Income Tax Return for Trusts (ITR12T) for detailed guidance.

Depending on the trust and information disclosed in the return, mandatory supporting documentation may include:

• Annual Financial Statements or Annual Administration Accounts;
• Minutes and resolutions of trustees;
• The Trust Deed or Last Will and Testament, as applicable;
• Beneficial ownership documentation; and
• Letters of Authority (LoA).

Trusts must generally retain relevant records and supporting documentation for five years from the date the return is submitted.

Longer retention periods apply in certain circumstances, including:

• Where a return has not yet been submitted;
• Where an objection or appeal is in progress;
• Where SARS is conducting an audit or investigation; or
• Where documents remain relevant for future years of assessment, such as Capital Gains Tax records.

Trustees should also note that, under section 99(2) of the Tax Administration Act, SARS may issue assessments beyond the ordinary prescription periods in cases involving fraud, misrepresentation, or non-disclosure of material facts.

Trusts are generally taxed at a flat rate of 45% on taxable income.

Special trusts (Type A and Type B) are taxed according to the progressive tax rates applicable to natural persons. However, special trusts do not qualify for the rebates, medical tax credits, or certain other exemptions available to natural persons.

For Capital Gains Tax (CGT) purposes, both Type A and Type B special trusts qualify for the reduced CGT inclusion rate applicable to special trusts. However, only a Type A special trust qualifies for the additional CGT concessions available to natural persons, such as the annual exclusion and primary residence exclusion.

Important: The tax treatment of a trust is determined by the trust type recorded on SARS’s registration system. Where a trust’s classification is incorrect, the registered trust type must be updated with SARS, together with the relevant supporting documentation.

For beneficiary taxpayers, whether individuals, companies, or trusts, the income tax reference number is mandatory if they are South African residents. If they are not South African residents, the income tax reference number is optional.

In exceptional cases where an individual has a South African identity number but has not registered for tax (e.g., a minor who does not earn taxable income), the identity number must be captured, and the taxpayer reference number can be filled with zeros (‘0000000000’). For non-resident beneficiaries, a passport number must be entered, and the taxpayer reference number can also be filled with zeros.

The income source codes selected in the ‘Trust Participant Schedules’ under section ‘Details of Taxable amounts distributed to/vested in beneficiaries or taxable in terms of section 7 or paragraph– 72 of the Eighth schedule to the Income Tax Act, 58 of 1962 must correspond to the income source codes reflected under local and/or foreign income where amounts were distributed to/vested in beneficiaries or taxable in terms of section 7.

For instance, if local interest was completed with source code 4201 and an amount was completed as distributed to/vested in beneficiaries or taxable in terms of section 7, then in the trust participant schedule, the taxpayer should complete the corresponding amount under ‘Details of Taxable amounts distributed to/vested in beneficiaries or taxable in terms of section 7 or paragraph 68 – 72 of the Eighth schedule’ in the ‘Trust Participant Schedule’.

The registered details of the trust must first be confirmed, to complete the ITR12T.

To do this either:

• Select “Yes” to question.
  • The Registration Amendments and Verification Form RAV01 will open.
  • Confirm the details and continue filling in the ITR12T.
• Alternatively:
  • Close the ITR12T and

Select ‘Maintain legal entity details’ on Income Tax Work Page.

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 prescribed format for these supporting documents defined in the Income Tax Act.