Enhancements to the Income Tax Return for Trusts (ITR12T) and SARS eFiling
The Trusts Filing Season started on 01 July when the Income Tax Return for Trusts (ITR12T) became available for completion and submission to the South African Revenue Service (SARS). This submission is in respect of the year of assessment ending on 28 February 2020.
The following change for Venture Capital Companies (VCC) was implemented on 24 July 2020:
In an effort to balance the benefit and perceived effectiveness of the VCC tax incentive regime whilst still protecting the bottom-line impact of high tax expenditure on the fiscus, the changes has been made in the VCC tax incentive regime to reintroduce a limitation of the amount to be deducted in respect of taxpayers investing in VCC shares.
To consider the effect of inflation and to further balance the intended impact of the VCC tax incentive on both small business and the fiscus, the tax deduction in respect of investment in VCC shares should be limited to R2,5 million per annum per VCC shareholder.
Supporting documents and additional information
The following documents, which are applicable to a Trust, must be present if you are eFiling or if you are going to file at a SARS branch:
- Financial statements and/or administration deductions.
- All certificates and documents relating to income and deductions.
- Proof of any tax credits claimed.
- Particulars of assets and liabilities.
Remember to keep all your supporting documents for five years. SARS may request the documents if verification is required.
Please complete the following schedules, where applicable, as you will be required to upload these in respect of your ITR12T submission:
- If the Trust was engaged in mining or mining operations as defined in section 1 of the Income Tax Act, complete Schedules A and B.
- If the Trust, together with any connected person in relation to the Trust, holds at least 10% of the participation rights in any controlled foreign company (CFC), complete the IT10 schedule.
To upload the supporting documents via eFiling, click “Upload supporting documents” once you are ready to submit your return.
Maintaining registered particulars of the Trust
- Before completing the ITR12T, you are required to verify several information and particulars of the Trust.
- Ensure that the contact, address, banking and Trustee details of the Trust are correct by updating where required on the Registration, Amendments and Verification Form (RAV01). You can verify and update the RAV01 details by:
- Clicking on “Maintain Registered Particulars” on eFiling. SARS may request you to come into a branch to verify any changes to the banking details, which may have been done via eFiling.
How to submit the ITR12T
You can submit the ITR12T via the following channels:
- eFiling: If you have not yet registered for eFiling, you are encouraged to do so, as this will enable you to complete and submit the return online in a secure environment.
- SARS branch: If you are representing a Trust with ten or fewer beneficiaries, you have the option to have the ITR12T return captured by an agent at the branch. SARS branches no longer print the ITR12T, so please print the return and complete all the required fields prior to visiting the branch. You can download the ITR12T return from eFiling. You may login to eFiling via the SARS website www.sars.gov.za.
- Manually completed and posted ITR12Ts are no longer accepted by SARS.
For more information, please consult the current guides, Step-by-Step Guide to complete your ITR12T via eFiling and the Comprehensive Guide to the ITR12T for Trusts.
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