Comprehensive Guide to the Income Tax Return for Trusts

Summary

The purpose of this webpage is to provide guidance for the completion of the Income tax return for Trusts (ITR12T).

A Trust is formed when the founder (also referred to as a donor or settlor) places cash or other assets under the administration and control of a trustee(s) to or for the benefit of a beneficiary(ies) or for a specified purpose.

Under the South African law, there are three types of Trusts:

• Ownership Trust – A founder or settlor transfers ownership of assets or property to trustees to be held for the benefit of a defined or a determinable beneficiary(ies) of the Trust.
• Bewind Trust – A founder or settlor transfers ownership of assets or property to beneficiaries of the Trust. The assets remain the property of the beneficiaries, but it is administered by the trustees (i.e., trustees are given control over the property).
• Curatorship Trust – The trustees administer the assets of the Trust for the benefit of a beneficiary that lacks the capacity to do so, for example, a curator placed in charge of a person with a disability.

In terms of section 6(1) of the Trust Property Control Act, no person may act as trustee without proper authorisation from the Master of the High Court where applicable. The Master of the High Court issues a Letters of Authority authorising the trustees to act as trustees.

Trusts may be described according to:

• Their method of formation (inter vivos or mortis causa Trusts).
  • An inter vivos Trust is created during the lifetime of an individual.
  • A mortis causa Trust is created upon the death of an individual under that individual’s Last Will and Testament.
• The rights they confer on the beneficiaries (vesting and discretionary Trusts).
  • Under a vesting Trust the income or capital gain or assets of the Trust are vested in the beneficiaries and the beneficiaries are said to have vested rights to the income or assets of the Trust. The beneficiaries are the true owners of the Trust capital and income.
  • Under a discretionary Trust the trustees usually have the discretion as to whether and how much of the income or capital of the Trust to distribute to the beneficiaries. In these circumstances, the beneficiaries merely have contingent/discretionary rights to the income or capital of the Trust (note: it is also not uncommon to find hybrid rights within a Trust – this means that one Trust instrument may include vested and discretionary rights).
• The purpose of the Trust (e.g., trading Trust, asset-protection Trust, charitable Trust, or special Trust).

General Information 2023 Filing Season

With the 2023 legislative changes the new fields for completion purposes have resulted in an enhanced income tax return for Trusts (ITR12T) –

• Debt Reduction (s19) – “Subsection 8(4)(a)(iii) has been amended to include section 19(6A) on the following proviso:
  • “(iii) previously taken into account as an amount that is deemed to have been recovered or recouped in terms of section 19(4), (5), (6) or (6A)”.
  • Note: This deals with the recoupment of debt that was previously allowed in terms of section 19.”
• Section 24 of the Income Tax Act, 1962, is hereby amended by the addition after subsection (2) of the following subsection:
  • ‘‘(2A) In the case of a lay-by agreement as contemplated in section 62 of the Consumer Protection Act, 2008 (Act No. 68 of 2008), the taxpayer may, to the extent that an allowance was not made under section 11(j), make an allowance in respect of all amounts which are deemed to have accrued under such agreement but which have not been received by the end of the taxpayer’s year of assessment: Provided that any allowance so made shall be included in the income of that taxpayer in the following year of assessment.”

The Local Business and Trading Income including crypto asset (s) container is updated on the ITR12T Form (excluding Rental Income from letting of Fixed Property and Farming Income), by including and additional field for Credit Agreements and debtors’ allowance “Lay Bye”. This will apply to the Special Allowances not claimed in the Income Statement and Allowances/Deductions granted in previous years of assessment.

The Inter-Departmental Committee Beneficial Ownership and Transparency (IDC-BOT) program aims to identify beneficial owners of Trusts who may gain financially from the proceeds of the Trust. SARS’ aim is to record all beneficial owners of registered Trusts in order to comply with the Financial Action Task Force (FATF) requirements.

• An additional container, “Beneficial Ownership”, will be included in the Trust Return ITR12T where the Beneficial Ownership Declaration must be captured.
• In this regard, certain information must be submitted to SARS via e-Filing i.e., a copy of the Trust instrument, letters of authority, etc. 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), which will elaborate on Beneficial Ownership in relation to the Trust.

An additional question is added to the wizard question on the Trust Income Distribution Schedule that states, “Was any local / foreign amount(s) distributed to the Trust / vested in the Trust as a beneficiary of another Trust or deemed to have accrued in terms of s7 during this year of assessment?”? A yes selection will prompt an additional question, “From how many other Trusts were amounts received or accrued”? NOTE: It is imperative to understand that the intention is not to double tax any taxpayer. The reference to distribution / vesting should be interpreted as the act of vesting of amounts. It is, however, common practice in the Trust environment to refer to “vesting” as “distribution”.

A simplified Return for Passive Trusts has been introduced to allow the taxpayer to complete a less cumbersome return, where limited Trust activity was initiated during the year of assessment. The term “Passive Trust” is introduced as a Trust can never be “dormant” and the trustees need to comply with the requirements of the TPCA. Key questions from the form wizard will determine the “type” of return.

Rejection of incorrect Return Type requested (Trust Return or Exempt Institution Return) – when the taxpayer requests a return, a message on eFiling will appear that the incorrect return type has been requested based on the tax type that the Trust is registered for:

• A popup message screen will be displayed to the taxpayer: “Please note, the return type being requested is not correct, you are requesting an <<ITR12T>>return, however the entity is registered as a <<Exempt Institution>>.Please request an ITR12EI return.
  • eFiling will direct and guide the Taxpayer to the correct return.

Section 18A (including Solidarity Fund) – Donations and Validations –

• “The information required by law in the receipts issued for tax-deductible donations is limited and entities issuing the receipts are not required to provide third-party data on the donations to SARS on a systematic basis. Third-party reporting will be extended in future to cover the receipts issued. Section 18A is hereby amended by addition of the following item:
  • “such further information as the Commissioner may prescribe by public notice;”
• Donations to the Solidarity Fund – was allowed for the period 1 April 2020 to 30 September 2020. Due to the nature of the tax periods in Trusts, the field for “Solidarity Fund Contributions” (and all the other corresponding changes) was displayed for both the 2020 and 2021 tax periods (not before) and there will be no reference to “Solidarity Fund Contributions” from 2022 onwards.

The field “other” in the Special Economic Zone container (SEZ) will be removed and the taxpayer will be restricted to only choose from the list of available SEZs.

• The Source Code “4054” will be deactivated from the 2023 year of assessment in terms of Venture Capital Company shares (s12J).

The computation of taxable income derived from pastoral, agricultural or other farming operations (Income from Local Farming Operations – IT48) will be updated to enable the appropriate selection to take place.

• Where a deduction in terms of subparagraph (1)(a) or (b) may be claimed in respect of a year of assessment, the period prescribed under section 29(3) of the Tax Administration Act after which records, books of account or documents need not be retained shall be extended to six years or eleven years respectively for such year of assessment.
• Where a deduction in terms of subparagraph (1)(b) may be claimed in a year of assessment, the period prescribed under section 97(4) of the Tax Administration Act after which a record of assessment may be destroyed shall be extended to eleven years for such year of assessment”.

Who must Complete and Submit the ITR12T

A Trust is a “person” for tax purposes and is therefore a taxpayer in its own right. The ITR12T must be completed and submitted by the trustees of the Trust, or the tax practitioner appointed by the trustee(s).

The following special Trust types are recognized for tax purposes:

• Special Trust – Type A – means a special Trust referred to in paragraph (a) of the definition of “special Trust” in section 1 of the Income Tax Act. This Trust is created solely for the benefit of one or more persons who is a relative of the founder and that has a disability as defined in section 6B (1) and such disability incapacitates the person(s) from earning sufficient income for their maintenance, or from managing their own financial affairs.
  • To be classified as a Special Trust – Type A, approval must be obtained from SARS.
  • A Trust will cease to be a Type A Trust from the beginning of the year of assessment during which all the beneficiaries with a disability (for whose sole benefit the Trust was created) become deceased.
• Special Trust – Type B – means a special Trust referred to in paragraph (b) of the definition of “special Trust” in section 1 of the Income Tax Act. This Trust is created in terms of the will of a deceased person solely for the benefit of beneficiaries who are the deceased person’s relatives, who are alive at the time of death of the deceased, and the youngest is under the age of 18 at the end of the year of assessment (also note the definition of the term “relative” that includes relatives in the third degree of consanguinity in relation to the beneficiary).                                                          
• Collective Investment Schemes – A scheme, in whatever form, including an open-ended investment company where members of the public are invited to invest money or other assets in a portfolio, and in terms of which two or more investors contribute money and hold a participatory interest in a portfolio of the scheme through shares, units or any other form of participatory interest. The investors share the risks and the benefits of the investment in proportion to their participatory interest in a portfolio of a scheme or on any other basis determined in the deed.

The Income Tax Act distinguishes between the following types of collective investment schemes:

• A portfolio of a collective investment scheme in securities;
• A portfolio of a collective investment scheme in property;
• A portfolio of a collective investment scheme in participation bonds;
• A portfolio of a declared collective investment scheme; and
• A portfolio of a hedge fund collective investment scheme.

How to Obtain and Submit a Return

eFiling

• The quickest, easiest, and most convenient way to obtain an ITR12T return is to register as an eFiler on www.sarsefiling.co.za, request the return and then customise it by completing the questions on the first page of the return.
• Any Trust that has more than 10 beneficiaries at any time during the year of assessment (YOA) is required to register and submit the ITR12T via eFiling. Trusts with less than 10 beneficiaries may register and submit returns via SARS Online Query System (SOQS) and at a SARS Branch Office.

SARS Branch Office

Trusts that are not registered for eFiling and have less than 10 beneficiaries may register and submit returns via the SARS Online Query System (SOQS) or may visit any of the SARS branches by walk-in appointment only or by voice calls or video calls interaction with a SARS branch agent, refer to GEN-BO-09-G01 – Book an Appointment at a SARS Branch – External Guide to submit the return.

All the necessary information required to complete the ITR12T return must be collected, calculated, and consolidated prior to visiting a SARS branch.

• The SARS official at the branch will not assist with the interpretation of the financial statements or other information and will only capture the information prepared by taxpayer/tax representative.
• An example of the Trust income tax return is available on the SARS website to assist with the information required to complete the return.
• SARS recommends that taxpayer/tax representative consult a registered tax practitioner of your choice should you require assistance in this regard.

If the Trust return, financial information, or other relevant material has not been prepared for capturing, the SARS agent will not be able to finalise the return.

As part of the SARS Go-Green initiative to decrease the use of paper, SARS officials at the branch will not print a copy of the ITR12T return that has been submitted.

Request for correction (RFC)

The Trust representative/tax practitioner may submit a corrected version of the ITR12T return via the following channels:

• eFiling if the Trust is registered for eFiling.
• The SARS branch walk-in by appointment only, voice calls, or video/virtual calls for interaction with a SARS branch agent.

If a correction is done on eFiling, the ITR12T return will be pre-populated with the most recent information submitted to SARS. Taxpayer/Tax Representative must correct the applicable fields on the return. A new version number will automatically be allocated to the amended return.

If a correction is requested for a return previously submitted in an older format (e.g., original return submitted in February 2022 and correction requested in March 2023):

• eFiling will display a message indicating that the return will be converted to the new ITR12T format for completion.
• This new version return will only be pre-populated with minimal data that could be transferred from the old format return.
• In this instance, the original IT12TR must be printed via eFiling, and the applicable information should be re-captured onto the new version of the return.

Once a corrected ITR12T has been submitted, no action can be taken on the previous version, as it will be replaced by the new version.

Schedules Required to Finalise a Return

The following schedules (available on www.sars.gov.za) must be completed and attached to the ITR12T as relevant material (where applicable to the Trust).

Ensure all mandatory supporting documents are provided and in a manner that can be easily accessed by SARS. All relevant documents are indicated in a drop-down menu in the return.

• If a Trust is a Collective Investment Scheme (CIS) the following documents are mandatory:
  • Annual Financial Statements/ Annual Administration Accounts
  • Copy of Trust Instrument i.e., Deed
• If a Trust is a Non-Resident Trust/ Foreign Trust, the following documents are mandatory:
  • Annual Financial Statements/ Annual Administration Accounts
  • Minutes and Resolutions of the trustees
    • All minutes, excluding those dealing with internal trustee governance arrangements and/or administrative matters, must be submitted.
  • Copy of Trust Instrument i.e., Deed or Last Will and Testament
  • Beneficial Ownership Document per entity listed.
• Other Trust types (Inter Vivos Trust, Testamentary Trust, Special Trust – Type A inter vivos, Special Trust – Type A Testamentary, Special Trust – Type B Testamentary:
  • Annual Financial Statements/ Annual Administration Accounts
  • Minutes and Resolutions of the trustees
    • All minutes, excluding those dealing with internal trustee governance arrangements and/or administrative matters, must be submitted.
  • Copy of Trust Instrument i.e., Deed or Will
  • Beneficial Ownership Document per entity listed.
  • Letters of Authority
• If the percentage of participation rights is declared as at least 10% in any controlled foreign company (did the Trust(s), together with any connected person in relation to the Trust(s), hold at least 10% of the participation rights in any controlled foreign company) the following additional document will be required:
  • Controlled Foreign Companies (IT10)
• If the Trust is classified as a mining entity (was the Trust engaged in mining operations as defined in s1 of the income Tax Act), the following documents will be required:
  • Mining Schedules A & B

The Trust is required to keep all the relevant material (i.e., supporting documents/schedules) for a period of five (5) years from the date of submission of the return. SARS may, within the 5 year period, request these documents/schedules to verify the information that was declared/attached schedules on the ITR12T return.

If the return is to be submitted at a SARS branch office, the taxpayer/tax representative should make an appointment via eBooking Service.

If the return is submitted at a SARS branch, the example of the Trust income tax return (available on the SARS website) must be completed and presented to the SARS agent for capturing. In other words, the taxpayer must wait until the SARS agent has captured the Trust return.

The Beneficial Ownership Supporting Documents:

• In this regard, certain information must be submitted to SARS via e-Filing i.e., a copy of the Trust instrument, letters of authority, etc. 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), which will elaborate on Beneficial Ownership in relation to the Trust.
• With regards to the capture of 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.
  • The system will only allow the Taxpayer to upload up to a maximum of 20 Beneficial Owners to be captured.
  • In the event there are more than 20 beneficial owners, the taxpayer must upload a supporting document that reflects the additional beneficial owner(s).

When must the completed ITR12T be submitted

• The due date for submission of income tax returns for Trusts is published annually in the Government Gazette. Every year SARS embarks on an extensive publicity campaign to inform taxpayers of the deadline for the year.

Payment Due Date

• The payment due date will reflect as the 1st day of the following month after an assessment was raised and the interest free period/grace period will reflect as the end of the month of the payment due date.

Provisional Taxpayer

• Provisional taxpayers are required to make provisional tax payments within six months after the commencement of a year of assessment and then again by the end of the year of assessment. Currently, no provision is made for instances where a taxpayer has a short year of assessment, whether by reason of liquidation or ceasing to be a tax resident. Paragraph 21 of the Fourth Schedule has been amended to insert subsection (1A) to state that the Provisional taxpayers are not required to make provisional tax payments which its duration is less than six months of that year of assessment.

Notice of Assessment (ITA34T)

ITA34T explanatory notes are added to explain the payment due date and will be displayed when relevant.

The ITA34T will display both the payment due date and the interest free period/grace period to align with the provisions of section 89(2) of the IT Act.

Note: The ITA34T is updated to include the following fields on all local and foreign income stream containers:

• Gross receipts and accruals (excluding local or foreign amount(s) vested from other Trust(s))
• Aggregate local or foreign income from other Trust(s)
• Total Gross receipts and accruals (including local or foreign amount(s) vested from other Trust(s))
• Credit agreements and debtors allowance (Lay bye) (s24) line item.

Estimated Assessments

• Once the filing period for Trusts ends, SARS may raise original estimated assessments on Income Tax Returns for Trusts (ITR12T) that were not officially filed by the taxpayer.
• After the estimated assessment has been raised by SARS, the taxpayer will be allowed to request an original (new) return to be submitted to SARS. The same estimated return will be issued on eFiling or via SARS branch or email or post, with a new version number for the return to be completed. The taxpayer will be able to request a correction after the original return has been submitted. If SARS is still not satisfied with the outcome of the revised declaration, the taxpayer will be informed in writing. Thereafter, the taxpayer will have the option to dispute process.

Rejected tax calculation due to invalid Tax Directive

If taxpayer/tax representative request a tax calculation for a Trust return with a lump sum amount on a IRP5 certificate, SARS will perform verification audit and one of the following messages may be displayed instead of the Tax Calculation, if the verification is unsuccessful:

• IRP5 Tax Directive No. invalid
  • Please note that this tax return was not processed, the Directive No.XXXXXXXXXXXXXXX captured on the IRP5 differs with the directive number issued by SARS. Please contact the Fund Administrator/Employer to rectify the error and resubmit the return.
• IRP5 Lump sum accrual date invalid
  • Please note that this tax return was not processed because the accrual date on the IRP5 certificate does not match the one issued by SARS, on Directive No. XXXXXXXXXXXXXXX. You can access a copy of the Tax Directive on eFiling or MobiApp. Urgently contact the Fund Administrator/Employer to correct the error and submit the corrected tax return.
• IRP5 Lump sum source code Invalid
  • Please note that this tax return was not processed because the Lump Sum source code on the IRP5 certificate does not match the one issued by SARS, on Directive No. XXXXXXXXXXXXXXX. You can access a copy of the Tax Directive on eFiling or MobiApp. Urgently contact the Fund Administrator/Employer to correct the error and submit the corrected tax return.
• IRP5 Lump Sum amount invalid
  • Please note that this tax return was not processed because the Lump Sum amount on the IRP5 certificate does not match the one issued by SARS on Directive No. XXXXXXXXXXXXXXX. Urgently contact the Fund Administrator/Employer to correct the error and submit the corrected tax return.
• IRP5 Lump sum amount missing
  • Please note that this tax return was not processed because SARS issued a Tax Directive No. XXXXXXXXXXXXXXX, but there is no Lump Sum amount declared on the return. You can access a copy of the Tax Directive on eFiling or MobiApp. Urgently contact the Fund Administrator/Employer to correct the error and submit the corrected tax return.
• Directive number invalid for Taxpayer
  • Please note that this tax return was not processed because SARS does not have a Tax Directive issued to the taxpayer. Tax Directive No. xxxxxxxxxxxxxxx on your IRP5 is invalid. You can access a copy of the Tax Directive on eFiling or MobiApp. Urgently contact the Fund Administrator/Employer to correct the error and submit the corrected tax return.

Once the Fund Administrator or Employer has corrected the error either on the IRP5/IT3(a) certificate to correspond with the information on the tax directive or the directive has been corrected to correspond with the information on the IRP5/IT3(a) certificate with SARS, Taxpayer/Tax Representative will be able to proceed to submit the Trust return. Ensure that you refresh the IRP5/IT3(a) data before completing the return.

VDP relief is available in respect of all taxes administered by SARS (but excluding duties and levies charged in terms of the Customs and Excise Act, 1964). This guide explains the legislative requirements applicable to the SARS Tax VDP, the application process, the outcomes thereof and further demonstrates how a taxpayer or representative can apply via eFiling.

Incorrect return type request for Trusts

A new rejection message for eFiling will be displayed when a taxpayer requests an “Income Tax return for Trusts (ITR12T)” whilst being registered as an Exempt Institution (EI) or vice versa. If the taxpayer does request an incorrect return, the taxpayer will be guided to the relevant functionality to change the return type for Trusts to EI. The messages will be displayed as follows:

• For Trust Registered as EI – “Please note that the return type being requested is incorrect. Taxpayer/Tax Representative are requesting an ITR12T return, however the Trust is registered as an “Exempt Institution”. Please request an ITR12EI return”.
• For a Trust requesting an EI return but Registered as a Trust – “Please note that the return type being requested is incorrect. Taxpayer/Tax Representative are requesting an ITR12EI return, however the entity is registered as a “Trust”. Please request an ITR12T return.

Getting Started

The registered particulars of a Trust (including trustee particulars, address/contact details and bank account details) must be verified and updated prior to requesting an ITR12T on eFiling.

To verify and update registered details, the taxpayers can:

• Click on Maintain SARS Registered Details on eFiling; or
• Visit a SARS branch by walk in appointment only, voice calls, or video/virtual calls for interaction with a SARS branch agent.

For bank account and trustee updates, the required relevant material – You may submit via the following online channels:

• eFiling.
• Send us an online query via SARS Online Query System (SOQS).

For more information on how to update registered information, refer to the external guide How to Complete the Registration Amendments and Verification form (RAV01) which is available on the SARS website.

Information to Create the Income Tax Return for a Trust (Tax Form Wizard)

The purpose of the tax form wizard section of the ITR12T is to customise the contents of the ITR12T return to the particular circumstances of the Trust:

• The following warning message will be displayed. Click on the OK button to proceed:

‘Please note that you cannot alter nor delete data provided by your Employer/Service provider. If the information on this form is incorrect, please contact your employer or service provider to have the information corrected and re-submitted to SARS. Note: To expedite the refund processing, please ensure that all banking details are correct. If you need any more information, simply visit www.sars.gov.za.’

Note: Some of the fields will appear and be hidden based on the year of assessment you complete.

The Tax Form Wizard

The following tabs will be displayed on the ITR12T return:

• Trust Return Information;
• Passive Trust;
• Local Amounts Received and/or Accrued;
• Foreign Amounts received and/or Accrued;
• Capital Gain/Loss;
• Amounts non-taxable;
• Donations;
• Deductions for SARS interest repaid (s7F);
• Venture Capital Companies;
• Tax Credits;
• Partnership Information;
• Beneficiaries; and
• Beneficial Ownership.

Trust Information

‘Have the banking, contact and trustee details of the Trust been verified and confirmed as correct?’ (Select ‘Y’ or ‘N’)

• This question is intended to determine if the registered information of the Trust is up to date.
• On eFiling:
  • If you answer ‘N’ to this question, a pop-up message will be displayed indicating that the “return cannot be filed until banking, contact and trustee details of the Trust have been verified and confirmed as correct.
  • Click “Ok”, and then save the return.
  • Select “Maintain Legal Entity Details” to amend the banking, contact and trustee details. For more information on how to update registered information, refer to the external guide “How to Complete the Registration Amendments and Verification form (RAV01)”.
  • Once the details have been updated, continue with the completion of the return.

‘Is the Trust a Collective Investment Scheme?’ (Select ‘Y’ or ‘N’)

• If ‘Y’, the “Trust Participants” container will not be displayed.
• If ‘N’, answer the question –

“Is the Trust an Employee Share Incentive Scheme?”

• If ‘Y’, the Trust Participants” container will be displayed.

‘Is the declaration made by a tax practitioner?’ (Select ‘Y’ or ‘N’).

• If ‘Y’ is selected, the Tax Practitioner section of the return must be completed.
• If the answer to the question “Is the declaration made by a tax practitioner?” is changed from ‘Yes’ to ‘No,’ a pop-up message will be displayed. Note the warning message displayed:
  • “Changing the answer to this question may result in data you have previously completed or data for which SARS has information not being reflected on your return. This could result in an incorrect statement. Do you wish to continue?”
• If “Yes” is selected – the Tax Practitioner section of the return must be completed.
• If “No” is selected a pop-up message will be displayed:
  • Please answer a few questions to help us generate your tax return:
  • Has the banking, contact and trustee details of the Trust been verified and confirmed as correct? (Refer to guide)”
  • You cannot file your return until the banking, contact and trustee details of the company have been verified and confirmed as correct. Please verify before continuing.
  • You may view the relevant information by –
    • Clicking on the ‘legal entity profile’ link on eFiling;
    • Visiting a SARS Branch; or
    • Getting in touch with the SARS Contact Centre, if updates are required, please contact the SARS Contact centre.

‘Does any declaration in this return relate to an application made under the SARS Voluntary Disclosure Programme?’ (Select ‘Y’ or ‘N’)

• If the Trust voluntarily applied to SARS to disclose defaults or non-compliance, select ‘Y’, and complete the Voluntary Disclosure Programme section of the return.
• If the answer to the question for SARS Voluntary Disclosure Programme is changed from ‘Yes’ to ‘No,’ a pop-up message will be displayed. Note the warning message displayed.
  • “Changing the answer to this question may result in data you have previously completed or data for which SARS has information not being reflected on your return. This could result in an incorrect statement. Do you wish to continue?”
  • If “Yes/No” is selected- you will be redirected to the form wizard to continue amending the question or leave it as is.

Passive Trust – A Simplified Return for Passive Trusts has been introduced to allow the taxpayer to complete a less cumbersome return, where limited Trust activities were initiated during the year of assessment. Key questions from the form wizard will determine the “type” of return.

• The following additional questions are included in the ITR12T Wizard under Trust Details container:
  • Is the Trust Passive? (Select ‘Y’ or ‘N’).
  • Did the Trust become passive during the year of assessment? (Select ‘Y’ or ‘N’).

‘Did the Trust enter into any reportable arrangement in terms of s34-39 of the Tax Administration Act?’ (Select ‘Y’ or ‘N’)

• Select ‘Y’ if the Trust applied to SARS for an arrangement or agreement for a reduction of a tax liability, including interest and any other amounts related to the financial expenses incurred as a result of non-compliance or debt outstanding and SARS issued a reportable arrangement reference number.
  • Specify the number of reportable arrangements entered with SARS. The number captured must be between 1 and maximum of 100.
  • The Reportable Arrangement section of the return must be completed.

Local Amounts Received and/or Accrued

An additional question to the wizard questions is introduced, that states, “Was any local amount distributed to the Trust/vested in the Trust as a beneficiary of another Trust or deemed to have accrued in terms of s7 during this year of assessment? (Select ‘Y’ or ‘N’)”

• From how many other Trusts were amount(s) received or accrued? Capture the number of the Trusts applicable. The “local amount” container will be added to the return to allow for the population thereof.

Note: Not all these fields are mandatory, at least one should be completed.

Note: Taxpayers must fill in the information, as per the number of containers stipulated. The Requirement is as follows:

Was any local income received by and/or accrued to the Trust during the year of assessment? (Select ‘Y’ or ‘N’) (excluding income vested from other Trusts).

• If ‘Y’ is selected, indicate the type of local income received or accrued to the Trust:
  • ‘Remuneration’
    • If ‘Y’ complete the “Local Remuneration” section.
  • ‘Annuities’
    • If ‘Y’ complete the “Local Annuities” section.
  • ‘Interest (excluding SARS interest)’
    • If ‘Y’ complete the “Local Interest” section.
  • SARS Interest
    • This field is applicable from the 2019 year of assessment onwards.
    • If ‘Y’ complete the “SARS Interest” section.
  • ‘Dividends deemed to be income i.t.o s8E and s8EA’
    • This field is applicable from the 2017 year of assessment onwards.
    • If ‘Y’ complete the “Dividends deemed to be income i.t.o. s8E and s8EA” section of the return.
  • ‘Distributions from Real Estate Investment Trusts (REIT)’
    • If ‘Y’ complete the “Distribution from Real Estate Investment Trust (REIT)” section.
    • This field is applicable from 2015 onwards.
  • ‘Local Rental Income from the letting of Fixed Property’
    • If ‘Y’ complete the “Local Rental Income from the letting of Fixed Property” section.
  • ‘Business, trade (including crypto asset(s)) or professional income (excluding Rental Income from the letting of Fixed Property and Farming)’
    • If ‘Y’ complete the “Business, trade or professional income (excluding Rental income from the letting of Fixed Property and Farming)” section.
  • ‘Farming Income’
    • If ‘Y’ complete the “Income from Local Farming Operations (IT48)) section.
    • Did the Trust participate in any local farming partnership operations? (Select ‘Y’ or ‘N’)
    • If ‘Y’ to the above question indicate ‘How many farming partnership operations did the Trust participate in?’ Enter a value between 1 and 20.
    • Note that this field will be pre-populated if the Trust previously had farming income.
  • ‘Other local income (excluding income listed above)’
    • If ‘Y’ complete the “Other Local Income” section.

Foreign Amount(s) Received and/or Accrued

An additional question to the wizard questions is introduced, that states:
“Was any foreign amount(s) distributed to the Trust/vested in the Trust as a beneficiary of another Trust or deemed to have accrued in terms of s7 during this year of assessment? (Select Y or N).

• If “Y” is selected, the following questions must be answered:
  • From how many other Trusts were amount(s) received or accrued? The “foreign amount” container will be added to the return to allow for the population thereof.

Note: Not all these fields are mandatory at least one should be completed.

Note: Taxpayers must fill in the information, as per the number of containers stipulated. The Requirement is as follows:

Was any foreign income received by and/or accrued to the Trust during the year of assessment (Select ‘Y’ or ‘N’) excluding income vested from “other” (Trusts)?

• If ‘Y’ indicate the type of foreign income received or accrued to the Trust:
  • ‘Interest’.
    • If ‘Y’ complete the “Foreign Interest Income” section.
  • ‘Dividends’
    • If ‘Y’ complete the “Foreign Dividend Income” section.
  • ‘Farming’
    • If ‘Y’ complete the “Foreign Farming Income” section.
  • ‘Imputed Net Income from Controlled Foreign Companies’
    • If ‘Y’ complete the “Imputed Net Income from Controlled Foreign Companies” section.
  • ‘Other foreign income (excluding income listed above)’
    • If ‘Y’ complete the “Other Foreign Income” section.

If “Yes/No” is selected – you will be redirected to the form wizard to continue amending the question or leave it as is.

Please note the message and click on the ‘Yes’ button to proceed.

Capital Gain/Loss

This section is mandatory and applicable from the 2016 year of assessment onwards.

‘Did the Trust dispose of any local assets attracting capital gain or loss (including crypto asset(s))?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ indicates the number of disposals made.

‘Did the Trust dispose of any foreign assets attracting capital gain or loss (including crypto asset(s))?’ (Select ‘Y’ or ‘N’)

• If “Y”, the “Capital gain vested in this Trust due to disposal of an asset(s) by another local Trust” section must be completed.
  • This field will be prepopulated by the Aggregate Local Capital Gain from another Trust(s) field.

‘Did the Trust receive capital gains from other local Trusts?’ (Select ‘Y’ or ‘N’)

• If ‘Y’, the ‘Capital gain vested in this Trust due to disposal of an asset(s) by another local Trust’ section must be completed.

‘Did the Trust receive capital gains from other foreign Trusts?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ the ‘Capital gain vested in this Trust due to disposal of an asset(s) by another foreign Trust’ section must be completed.

‘Has any debt been reduced for no consideration which has the effect of reducing the assessed capital loss of the Trust under paragraph 12A(4) of the Eighth Schedule?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ indicate if the reduction was i.r.o. a local asset or whether the reduction was i.r.o. a foreign asset.

Amounts Non-Taxable

‘Did the Trust receive any amounts considered non-taxable?’ (Select ‘Y’ or ‘N’)

• Select ‘Y’ if the Trust received income that should be exempt/non-taxable and complete the “Amounts considered non-taxable” section of the return.

Donations

Section 18A is amended so that additional information will be required as the Commissioner may prescribe by public notice.

‘Does the Trust want to claim donations made to approved organisations in terms of s18A that did not vest in any Trust beneficiary?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ indicates “How many approved organisations did the Trust donate to?” (The maximum number allowed on the return is 99).

Deduction for SARS Interest Repaid i.t.o. s7F that did not vest in any Trust Beneficiary

• Does the Trust want to claim a deduction of SARS interest repaid i.t.o s7F that was previously taxed i.t.o. s7E and that did not vest in any Trust beneficiaries? (Select ‘Y’ or ‘N’).

Recoupment of Venture Capital Company Shares sold Venture Capital

‘Were any SARS approved Venture Capital Company shares sold for which a tax deduction was allowed to the Trust?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ completes the “Recoupment i.r.o. Venture Capital shares sold 12J” section.

Tax Credits

‘Will the Trust be claiming any PAYE credits reflected on an IRP5 tax certificate (excluding PAYE on Lump Sum benefit(s))?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ specify the number of IRP5 tax certificates.
• Complete the “PAYE credits available” section of the return.

Prior to the 2017 year of assessment, the Trust may qualify to claim a tax credit in terms of section 6quin in respect of foreign tax withheld by a foreign country on income from a South African source.

However, should the resident Trust receive a refund of the foreign tax withheld, or be discharged from a liability to pay such foreign tax, the amount refunded or discharged is treated as an amount of normal tax payable by the resident to the extent that a rebate was previously allowed by SARS. The following field is only applicable to the years prior to 2017 and will not appear on your ITR12T return from the 2017 year of assessment onwards.

‘Will the Trust be claiming a deduction on South African (SA) sourced trading income i.t.o. s6quat (1C)?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ complete the section “Deduction i.t.o. s6quat(1C) for foreign taxes paid or proved to be a foreign government of any country on any SA sourced trade income that did not vest in any Trust beneficiary”.

Partnership Information

‘Is the Trust a partner in a partnership?’ (Select ‘Y’ or ‘N’)

• If ‘Y’ indicates the number of partnerships. A numeric value between 1 and 99 can be entered in this field.

Participants in Trust Transactions or Trust Participants

The purpose of the questions in this section of the return is to provide details of transactions that may be taxable in the hands of the person (company, Trust, or natural person) who transacted with the Trust during the particular year of assessment.

• Note that this section will not be required for Trusts that are ‘Collective Investment Schemes’ or ‘Employee Share Incentive Schemes’

The following definitions are guidelines in respect of declaring contribution, distribution, or donations in the context of Trusts:

• A contribution (donation, settlement or other disposition) to a Trust is normally made by the donor/founder/settlor of the Trust (may be thought of as akin to a capital contribution to a company by a shareholder). A contribution can take the form of a donation, but not all donations are contributions. Where a donation is made by the founder/settlor/donor of the Trust it should be treated as a contribution. In the context of a trading Trust an amount contributed to the Trust in exchange for the right to future benefits from the Trust must also be treated as a contribution.
• A distribution by a Trust refers to amounts vested in the Trust beneficiaries. It is important to understand that vesting (of a benefit in a beneficiary) is an indispensable prerequisite for the distribution to occur.
• A donation to a Trust refers to amounts paid to the Trust by any person in a manner that is gratuitous/with disinterested benevolence (i.e., not in exchange for a right to future benefits).

‘Specify the number of persons or beneficiaries who during this year of assessment participated in any one or more of the following:’ (capture the number of persons or beneficiaries).

• Is taxable on income/capital gains distributed to/vested in beneficiaries or taxable i.t.o. of s7 or paragraph 68 – 72 of the Eighth schedule:
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received.
  • Paragraph 68 – 72 of the Eighth Schedule deals with attribution of capital gains where a person has made a donation, settlement, or other disposition.
• Received a distribution/vesting of non-taxable income from this Trust.
• Received a distribution/vesting of capital or assets from this Trust.
• Had a loan agreement with the Trust.
• Made/Received donation(s)/contribution(s) to/from this Trust.
• Received distributions from other Trusts or foundations.
• Received a return of contribution(s) made to this Trust.
• Had granted the right of use of asset(s) retained in this Trust.

Completion of the Trust Return

The following fields are pre-populated on the return and cannot be edited:

• ‘Registered Name’;
• ‘Taxpayer Ref No’ – Taxpayer Reference Number;
• ‘Residency for Income Tax Purposes’;
• ‘Master’s office of Trust registration’.
• ‘Trust Reg No’ – Trust Registration Number; and
• ‘Date registered at Master’s Office’;

Indicate the ‘Residency for income tax purposes’

• Example: South Africa = ZAF.
• Refer to Appendix A of this guide for a list of country codes.

Indicate the ‘Main Income Source Code’

• To access the list of source codes, please refer to the “Find a Source Code” tool which is available on the SARS website www.sars.gov.za

‘Trust Type’:

• This field will be pre-populated from 2008 onwards. For years prior to 2008, the user may select the appropriate ‘Trust Type’.

Note the Trust type definitions below:

• ‘Inter Vivos/Testamentary’
• ‘Inter Vivos’ – a Trust set up during the lifetime of a person.
• ‘Testamentary’ – a Trust set up in terms of the Last Will and Testament of a deceased person.
• ‘Non-Resident’ – Means any person who is not a “resident”.
• ‘Special Type para(a)’ – a Trust created solely for the benefit of one or more persons who are relatives of the founder and have a ‘disability’ as defined in section 6B(1) and such disability incapacitates such person from earning sufficient income for their maintenance, or from managing their own financial affairs. In order to be classified as a Special Trust – Type A, approval must be obtained from SARS.
• ‘Special Type para(b)’ – a Trust created in terms of the Last Will and Testament of a deceased person and is solely for the benefit of beneficiaries who are his/her relatives, who are alive at the time of death, and of which the youngest is under the age of 18 at the end of the year of assessment.
• Personal Service Provider – For the definition of a ‘Personal Service Provider’, refer to paragraph 1 of the Fourth Schedule to the Income Tax Act, No.58 of 1962.
• ‘Collective Investment Scheme’ – is a scheme, in whatever form, including an open-ended investment company where members of the public are invited to invest money or other assets in a portfolio and in terms of which two or more investors contribute money and hold a participatory interest in a portfolio of the scheme through shares, units or any other form of participatory interest. The investors share the risk and the benefit of investment in proportion to their participatory interest in a portfolio of a scheme or on any other basis determined in the deed.

Indicate the ‘Income Rights’ of the Trust:

• ‘Vesting’ – Under a vesting Trust the beneficiaries have a vested right to the income (revenue) of the Trust (Bewind Trust).
• ‘Discretionary’ – Under a discretionary Trust the trustees have the discretion as to whether and how much of the income of the Trust to distribute to the beneficiaries. In these circumstances the beneficiaries merely have a contingent right to the income of the Trust.
• Note that either one or both of the options must be selected.

Indicate the ‘Capital Rights’ of the Trust:

• ‘Vesting’ – Under a vesting Trust the beneficiaries have a vested right to the capital of the Trust.
• ‘Discretionary’ – Under a discretionary Trust the trustees have the discretion as to whether and how much of the capital of the Trust to distribute to the beneficiaries.
• Note that either one or both of the options must be selected.

Tax Practitioner Details

This section of the return must only be completed if you selected ‘Y’ to the question “Is the declaration made by a registered tax practitioner?” on the “Tax Form Wizard” section of the return.

If a tax practitioner completes and submits a return on behalf of the Trust, provide the following details:

• ‘Tax Practitioner Registration Number’ – This field is mandatory. The first 2 characters must be ‘PR’ followed by 7 alphanumeric characters.
• ‘Tax Practitioner Telephone Number’ – This field is mandatory.
• ‘Email Address’–
  • If the tax practitioner does not have an email address, indicate this by selecting the field ‘Mark here with an ‘X’ if you declare that you do not have an email address.’
• ‘Confirm Email Address’– This field is mandatory if the tax practitioner has an email address and if the tax practitioner does not have an email address at least the contact details must be completed for SARS to be able to contact you.

Personal Service Provider

• Select ‘Y’ or ‘N’ to indicate if the Trust is a Personal Service Provider.

Voluntary Disclosure Programme (VDP)

The purpose of the VDP is to allow taxpayers an opportunity to regularise their tax affairs with SARS.

• Taxpayers must voluntarily apply to SARS to disclose their defaults or non-compliance.
• A VDP application number will be allocated by SARS.
• Once the VDP application has been evaluated by the VDP Unit and where voluntary disclosure relief is granted, a written agreement will be concluded between the taxpayer and SARS in order to effect the necessary assessments.
• Should you require more information, please refer to the Comprehensive Guide concerning VDP which is available on the SARS website www.sars.gov.za.

Complete the VDP application number issued by SARS.

Note that the VDP application number completed must be where there is an approved VDP agreement between SARS and the Trust.

Reportable Arrangement

This section of the return will be repeated according to the number of reportable arrangements specified on the ‘Reportable Arrangements’ section of the “Information to create the Income tax return for a Trust” displayed on the initial return page.

An arrangement is reportable if it is an arrangement that:

• Results in a tax benefit and meets any of the other requirements in accordance with the Tax Administration Act.
• Is deemed reportable by the Commissioner.

On receipt of the prescribed information, the SARS official responsible for receiving Reportable Arrangements will issue a reportable arrangement reference number.

• Complete the ‘reportable arrangement number’ on the return.

Select ‘Y’ or ‘N’ to indicate if the Trust is a party to any arrangements which has the following features:’

• ‘Round trip financing (s80D)?’
• ‘Elements that have the effect of offsetting or cancelling each other?’
• ‘Presence of an accommodating or tax-indifferent party (s80E)?’

Passive Trust Information

• Is there a loan from a connected person to the Trust? (Select ‘Y’ or ‘N’)
• Is the Trust an asset holding Trust? (Select ‘Y’ or ‘N’)
  • If Yes is selected state “How was the passive Trust financed or funded”?

Related Information

From the 2015 year of assessment onwards, the questions in this section are mandatory.

‘Is the Trust incorporated, established, or formed in the Republic or is the place of effective management in the Republic?’

Did the Trust cease to be a resident during this year of assessment? (Select ‘Y’ or ‘N’).

• If Y is selected state the date on which the Trust ceased to be a resident (CCYYMMDD).

‘Did the Trust, together with any connected person in relation to the Trust, hold at least 10% of the participation rights in any controlled foreign company (CFC)?’

• ‘Please confirm that the applicable Schedule (IT10) has been completed and will be attached as a supporting document to this return’
  • Select ‘Y’ or ‘N’
  • Note that the IT10 which is available on the SARS website (www.sars.gov.za) is mandatory and must be submitted together with the ITR12T return.
• ‘Specify the number of CFC’s?’

‘Was the Trust engaged in mining or mining operations as defined in s1 of the Income Tax Act?’

• Select ‘Y’ or ‘N’ and if ‘Y’:
• ‘Please confirm that the Mining Schedule (Schedule A and B) has been completed and will be attached as a supporting document to this return (refer to guide)?’
  • The mining schedule (GEN-001) which is available on the SARS website (www.sars.gov.za) is mandatory and must be submitted together with the ITR12T return.
  • If ‘N’ – a pop-up message will be displayed. Note the warning message displayed:
    • ‘It is mandatory to complete and attach the required supporting documents.’

Did the Trust comply with all the qualifying provisions of a Special Trust as defined in s1 of the Income Tax Act during the year of assessment? (Select ‘Y’ or ‘N’)

• If Y is selected “Was the Trust created by means of a Trust Deed or Last Will and Testament?”

‘Were any changes made during the year of assessment to the composition of the trustees?’

• Select ‘Y’ or ‘N’ to indicate if there were any changes made during the year of assessment to the composition of the board of trustees. This would be in a case where trustees were added or removed, i.e., resignation, by Court Order, by the Master of the High Court, death etc.

‘Were any changes made during the year of assessment to the composition of the beneficiaries?’

• Select ‘Y’ or ‘N’ to indicate if any beneficiaries were added or removed.

Indicate if there ‘Were any changes made during the year of assessment to the Trust deed?’

• ‘If yes, where beneficiaries have a vested right to the Trust’s asset(s), has the change in the Trust deed affected any of the beneficiaries’ vested interest in the Trust’s asset(s)?’

Did any amounts distributed by the Trust or retained in the Trust arise because of a donation, settlement, or other disposition to this Trust?’

Is this Trust a beneficiary of another Trust or are other Trust(s) beneficiaries of this Trust?

Statement of Assets and Liabilities

This section is mandatory from the 2016 year of assessment onwards. Use the financial statements to complete the applicable line items in this statement. If an asset or liability is not applicable to the Trust, insert a zero in that field. For foreign assets and liabilities, only the aggregate amounts must be completed.

Assets

Local Assets (at cost) –

• A cost value (historic cost) for the local assets owned by the Trust must be declared in this section of the return. Complete the following fields as per the amounts on the financial statements:
  • ‘Fixed property and all improvements to property’
    • Complete the value of the property and the value of all improvement costs i.e., any extension, addition, or improvements other than repairs to the property in order to increase or improve the industrial capacity of the property.
  • ‘Shares in private companies or member’s interest in Close Corporations’
    • Complete the value of any interest that the Trust holds in private companies or member’s interest in Close Corporations.
  • ‘Loan: Interest Bearing’.
  • ‘Loan: Interest Free’.
  • ‘Financial instruments listed (Shares, Unit Trusts, etc.) excl. crypto asset(s))’.
  • ‘Financial instruments (crypto asset(s))’.
  • ‘Net capital of business, trade, profession or farming’.
  • ‘Equipment, Machinery, Implements’.
  • ‘Motor vehicle, Caravans, Boats’.
  • ‘Debtors’.
  • ‘Stock’.
  • Complete the value of the stock and produce on hand as per the financial statements. This will be the closing stock held by the Trust at the end of the financial year end.
  • ‘Livestock – elected value(s)’
    • Complete the value of the livestock the Trust owns based on the elected values.
    • The Trust may select to value the livestock using standard values as per paragraph 5 or 6 of the First Schedule to the Act.
    • If paragraph 6 is selected the values must not differ by more than 20% (higher or lower) from the standard values fixed by regulation in the Government Gazette.
  • ‘Cash on hand, in bank and other similar institutions’.
  • ‘Personal effects (e.g., Jewellery, Paintings, Furniture, etc.)’
  • ‘Other assets’
  • Complete this field if there are other assets not listed above.
  • ‘Please provide descriptions relating to other assets listed above’
    • Provide descriptions relating to the assets not listed above.
    • This field is mandatory if “Other assets” above is completed.
• ‘Total Local Assets’
  • This is the sum of all Local Assets. This field will be automatically calculated on the return for eFiling.

Foreign Assets

The foreign currency value must be converted to South African Rands using the spot rate as at the end of the year of assessment in which the asset was acquired.

Total Assets (Local and Foreign)

• This field is automatically calculated as follows: ‘Total Local Assets’ +’Total Foreign Assets’

Liabilities

• Local Liabilities
• Complete the following local liabilities as per the amounts on the financial statements:
  • ‘Mortgage Bonds’.
  • ‘Loan: Interest Bearing’.
  • ‘Loan: Interest Free’.
  • ‘Creditors’.
  • ‘Bank Overdraft’.
  • ‘Other liabilities’.
  • ‘Please provide descriptions relating to other liabilities not listed above’
    • Provide descriptions relating to other liabilities not listed above.
    • This field is mandatory if the field “Other liabilities” (above) has been completed.
  • ‘Total Local Liabilities’
    • This is the sum of all Local Liabilities. This field will be automatically calculated on the return for eFiling.

Foreign Liabilities

The foreign currency value must be converted using the spot rate as at the end of the year of assessment.

Total Liabilities (Local and Foreign)

This field is automatically calculated as follows: ‘Total Local Liabilities’ + ‘Total Foreign Liabilities’

Trust Capital

Insert the ‘Retained Earnings’ amount as per the financial statements. You can enter a negative sign (-) to indicate a debit balance.

Local Amount(s) Distributed to the Trust / Vested in the Trust as a Beneficiary of another Trust(s) or deemed to have Accrued in terms of S7

If Yes is selected on the additional question to the wizard questions that states, “Was any local amount distributed to the Trust/vested in the Trust as a beneficiary of another Trust or deemed to have accrued in terms of s7 during this year of assessment?”, a new container will be displayed and the following fields should be completed.

Trust Details of other Trust(s)

• Trust Name
• Trust Registration Number (as per Letters of Authority)
• Trust Tax Reference Number
  • Note: The fields pertain to details of other Trust(s), where income/capital gain was vested from.

Details of Local Amount(s) received or Vested from other Trust(s)

Note: not all these fields are mandatory but at least one should be completed:

• ‘Local Remuneration’
• ‘Local Annuities’
• ‘Local Interest’
• ‘SARS Interest
• ‘Distributions from Real Estate Investment Trust(s) (REIT)/Taxable Local Dividends’
• ‘Local Capital Gain’
• ‘Local Capital Loss’
• ‘Local Rental Income from the letting of fixed property(ies)’
• ‘Dividends deemed to be income in terms of s8E and s8EA’
• ‘Local Business and Trading Income (excluding Rental Income from letting of fixed property(ies) and income from Farming Operations)’
• ‘Income from Local Farming Operations (IT48)’
• ‘Other Local Income’

Note: These amounts are income vested from other Trust(s), excluding income amounts from the Trust completing the return. The amounts stipulated will be aggregated in the “Aggregate Local Amounts Received or Vested from other Trust(s)” container.

Aggregate Local Amount(s) received or Vested from other Trust(s)

The” Aggregate Local Amount(s) Received or Vested from Other Trust(s)” container is a prepopulated container. All similar fields specified under the Details of the Local Amount(s) Received or Vested from Other Trust(s) containers are aggregated and transferred to the various associated income stream containers, that is added to the Gross Receipt and Accruals fields, used to calculate the Aggregate Local Amount(s) Received or Vested in the Trust.

• Aggregate Local Remuneration from other Trust(s).
• Aggregate Local Annuities from other Trust(s).
• Aggregate Local Interest from other Trust(s).
• Aggregate SARS Interest from other Trust(s)
• Aggregate Distributions from Real Estate Investment Trust(s) (REIT)/Taxable Local Dividends from other Trust(s).
• Aggregate Local Capital Gain from other Trust(s).
• Aggregate Local Capital Loss from other Trust(s).
  • This container will not be transferred to the Local Capital Gain / Loss container.
  • Note: The taxpayer should include the Capital Gain/ Loss from other Trust(s) in the ITR12T.
• Aggregate Local Rental Income from the letting of fixed property(ies) from other Trust(s).
• Aggregate Dividends deemed to be income in terms of s8E and s8EA from other Trust(s).
• Aggregate Local Business and Trading Income (excluding Rental Income from letting of fixed property(ies) and income from Farming Operations) from other Trust(s).
• Aggregate Income from Local Farming Operations (IT48) from other Trust(s).
• Aggregate Other Local Income from other Trust(s).

Local Amount(s) received or Vested from other Trust(s)

Local Remuneration

This section would display if you selected ‘Y’ to the question “Indicate the type of local income received / accrued to the Trust: Remuneration” on the tax form wizard of the return.

Use the financial statements to determine the amount of taxable remuneration income that would be available for distribution. For example, the following remuneration may have been received by or accrued to the Trust:

• Annual Bonus;
• Commission;
• Pension; or
• Salary.

Complete the following mandatory fields (from the 2015 year of assessment onwards):

• ‘Gross receipts and accruals’ (excluding local remuneration vested from other Trust(s))
• ‘Add: Aggregate local remuneration from other Trust(s).’
• ‘Total Gross receipts and accruals (including local remuneration vested from other Trust(s)).’
• ‘Less: Allowable expenses attributable to local remuneration (excluding donations)’.
• ‘Taxable amount available for distribution / Assessed loss retained in Trust’.
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received.
  • The amount cannot be greater than the taxable amount available for distribution. An assessed loss cannot be distributed to/vested in beneficiaries.
• ‘Taxable in Trust’ – This field will be automatically calculated on the return as follows:
  • Taxable amount available for distribution / assessed loss retained in the Trust.
  • Less: Amount distributed to / vested in beneficiaries or taxable i.t.o. s7.
• ‘Source Code’ – The source code must be within the following:
  • 3601 – Income: Taxable;
  • 3602 – Income: Non-taxable;
  • 3603 – Pension – Taxable;
  • 3604 – Pension – Non-Taxable;
  • 3605 – Annual Payment – Taxable;
  • 3606 – Commission;
  • 3616 – Independent Contractors;
  • 3617 – Labour brokers;
  • 3620 – Director Fees RSA Resident;
  • 3621 – Director Remuneration Non-Resident;
  • 3667 – Foreign Labour brokers;
  • 3670 – Directors Fees RSA Resident for Foreign Service Income;
  • 3719 – Paragraph (dd) of the Provisio to s10(1)(k)(i) Local dividend;
  • 3720 – Paragraph (ii) of the Provisio to s10(1)(k)(i) Local dividend; and
  • 3721 – Paragraph (jj) of the Provisio to s10(1)(k)(i) Local dividend.

Please note that Local Remuneration cannot create an assessed loss.

Local Annuities

This section will display if ‘Y’ was selected to the question “Indicate the type of local income received / accrued to the Trust: Annuities” on the tax form wizard of the return.

Use the financial statements to complete the following mandatory fields (from the 2015 year of assessment onwards):

• ‘Gross receipts and accruals’ (excluding local annuities vested from other Trust(s)).
• ‘Add: Aggregate local annuity from other Trust(s).’
• ‘Total Gross receipts and accruals (including local annuities vested from other Trust(s))’
• ‘Less: Allowable expenses attributable to the local annuities (excluding donations)’.
• ‘Taxable amount available for distribution/Assessed loss retained in Trust’ This field is automatically calculated on the return for both eFiling and branch submissions from the 2016 year of assessment onwards as follows:
  • Gross receipts and accruals.
  • Less: Expenses (excluding donations).
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. The amount cannot be greater than gross receipts and accruals.
• ‘Taxable in Trust’ – This field will be automatically calculated on the return as follows:
  • Gross receipts and accruals.
  • Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7.
• Source Code: Complete 3610 or 3611 as source code.
  • 3610 – Annuity from Retirement Fund.
  • 3611 – Purchased Annuities Taxable.

Please note that Local Annuities cannot create an assessed loss.

Lump Sum Benefits Received or Accrued

Lump sums received by Trusts will be subject to a validation process similar to the current PIT process, any discrepancies (based on specific business rules) will be communicated to the taxpayer before submission of the return, and the taxpayer will be prevented from filing a return if these discrepancies are not resolved.

All pre-populated data will be locked, and the taxpayer will have to approach the fund administrator to rectify the issue from the PAYE side.

The taxpayer will be able to add lump sum details by amending the wizard, and manually completing the required detail. However, a taxpayer will not be allowed to delete pre-populated data.

Complete the following if a taxpayer selected Yes in the wizard question “Lump Sum Benefits Received or Accrued” and entered the “Number of lump sum benefits or accrued” in the wizard sub-question.

• ‘Gross Lump Sum (as per IRP5/IT3(a))’.
  • Use the IRP5/IT3(a) to complete the following fields which are mandatory from the 2022 year of assessment onwards and this fields can be repeated at the maximum of 20 times.
• ‘Source Code’.
  • Code 3915.
• ‘Tax Directive Number (as per IRP5/IT3(a) certificate)’.
• ‘IRP5/IT3(a) Certificate Number’.
• ‘PAYE on Lump sum benefit’.
  • Source code 4115.

Note: The IRP5/IT3(a) tax certificate will be pre-populated in this section where the Fund submitted the record to SARS, if not, it must be captured manually onto the return based on the IRP5/IT3(a) tax certificate.

Note: The refreshing functionality on lump sum submission information that is used to compare the information with the actual Tax Directive will be refreshed upon the taxpayer refreshing the return.

Local Interest (excluding SARS Interest)

This section would display if you selected ‘Y’ to the question “Indicate the type of local income received / accrued to the Trust: Interest” on the tax form wizard of the return.

Use the financial statements to complete the following mandatory fields (from the 2015 year of assessment onwards):

• ‘Gross receipts and accruals’ (excluding local interest vested from other Trust(s)).
• ‘Add: Aggregate local interest from other Trust(s).’
• ‘Total Gross receipts and accruals (including local interest vested from other Trust(s)).’
• ‘Less: Allowable expenses attributable to local interest (excluding donations)’.
• ‘Taxable amount available for distribution / assessed loss retained in the Trust’ This field will be automatically calculated as follows:
  • Gross receipts and accruals.
  • Less: Expenses (excluding donations).
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. The amount cannot be greater than the taxable amount available for distribution. An assessed loss cannot be distributed to/vested in beneficiaries.
• ‘Taxable in Trust’ – This field will be automatically calculated as follows:
  • Taxable amount available for distribution/assessed loss retained in the Trust.
  • Less: Amount distributed to / vested in beneficiaries or taxable i.t.o. s7.
• ‘Source Code’
  • The field will be pre-populated with code 4201.

Please note that Local Interest cannot create an assessed loss.

SARS Interest

This section will display if you selected ‘Y’ to the question “Indicate the type of local income received / accrued to the Trust: SARS Interest” on the tax form wizard of the return.

Complete the following mandatory fields (from the 2019 year of assessment onwards):

• ‘Gross receipts and accruals’ (excluding local interest vested from other Trust(s)).
• ‘Add: Aggregate local SARS interest from other Trust(s).’
• ‘Total Gross receipts and accruals (including local SARS interest vested from other Trust(s)).’
• ‘Less: Allowable administration expenses attributable to SARS interest (excluding donations)’.
• ‘Taxable amount available for distribution/assessed loss retained in the Trust’ This field will be automatically calculated as follows:
  • Gross receipts and accruals.
  • Less: Allowable administration Expenses (excluding donations).
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. The amount cannot be greater than the taxable amount available for distribution. An assessed loss cannot be distributed to/vested in beneficiaries.
• ‘Taxable in Trust’ – This field will be automatically calculated as follows:
  • Taxable amount available for distribution/assessed loss retained in Trust.
  • Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7.
• ‘Source Code’
  • The field will be pre-populated with code 4237.

Distributions Received from Real Estate Investment Trusts (REIT)

This section will display if ‘Y’ was selected for the question: “Indicate the type of local income received/accrued to the Trust: Distribution received from a real estate investment Trust (REIT)” on page one of the return.

Use the financial statements to complete the following fields:

• ‘Gross receipts and accruals’ (excluding local distributions from Real Estate Investment Trust (REIT) vested from other Trust(s)).’
• ‘Add: Aggregate local distributions from Real Estate Investment Trusts (REIT) from other Trust(s).’
• ‘Total Gross receipts and accruals (including local distributions from Real Estate Investment Trusts (REIT) vested from other Trust(s)).’
• ‘Less: Allowable expenses attributable to REIT distributions received (excluding donations)’.
• ‘Taxable amount available for distribution / assessed loss retained in Trust’ This field will be automatically calculated as follows:
  • Gross Receipts and Accruals.
  • Less: Expenses (excluding donations).
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. The amount cannot be greater than the taxable amount available for distribution. An assessed loss cannot be distributed to/vested in beneficiaries.
• Taxable in Trust – This field will be automatically calculated as follows:
  • Taxable amount available for distribution/assessed loss retained in the Trust.
  • Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7.
• ‘Source Code’
  • The field will be pre-populated with code 4238.

Dividends deemed to be Income i.t.o. s8E and s8EA

Sections 8E and 8EA of the Income Tax Act were amended to include any right or interest where the value of that right or interest is directly or indirectly determined with reference to a share, or an amount derived from a share i.e., equity instruments treated as hybrid instruments. The effect of the amendment is that dividends received by persons i.r.o. those equity instruments must be deemed to be income.

Complete the following if applicable to the Trust:

• ‘Gross receipts and accruals’ (excluding local dividends deemed to be income i.t.o. s8E and s8EA vested from other Trust(s)).
• ‘Add: Aggregate local dividends deemed to be income i.t.o. s8E and s8EA from other Trust(s)’.
• ‘Total Gross receipts and accruals (including local dividends deemed to be income i.t.o. s8E and s8EA vested from other Trust(s))’.
• ‘Less: Allowable expenses attributable to dividends deemed to be income (excl. donations)’.
• ‘Taxable amount available for distribution/assessed loss retained in the Trust’.
  • This field will be auto calculated.
  • Negative currency amounts are allowed.
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’
  • The amount in this field cannot exceed the value of the “Taxable amount available for distribution/assessed loss retained in Trust”
  • This field will be greyed-out/locked (cannot edit this field) if the “Taxable amount available for distribution/assessed loss retained in the Trust” results in a negative value.
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. This amount must be limited to the taxable amount available for distribution. An assessed loss cannot be distributed to / vested in a beneficiary.
• ‘Taxable in Trust’
  • This amount is auto calculated as follows:
    • ‘Taxable amount available for distribution/assessed loss retained in the Trust’.
    • Less ‘Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
  • This field will default to zero and will be greyed-out/locked (as explained above) if the “Taxable amount available for distribution/assessed loss retained in the Trust” is less than or equal to zero.
• ‘Source Code’
  • Code 4292 will be pre-populated in this field.

Other Local Income

This section would display if you selected ‘Y’ to the question “Indicate the type of local income received/accrued to the Trust: Other local income” on page one of the return.

‘Other Local Income’ declared in this section excludes local income from Remuneration, Annuities, Interest, Dividends i.t.o. s8E and s8EA (from 2017 YOA onwards), REIT, Rental from the letting of Fixed Property, Capital Gains/Losses, Farming and Business/ Trade/ Professional.

Complete the applicable fields below:

• ‘Gross receipts and accruals’ (excluding other local income vested from other Trust(s)) – complete the total amount of the receipts and accruals relating to other local income as per the financial statements.
• ‘Add: Aggregate other local income from other Trust(s).’
• ‘Total Gross receipts and accruals (including other local income vested from other Trust(s)).’
• ‘Less: Allowable Expenses attributable to other income (excluding donations)’.
• ‘Add: Expenses incurred i.r.o. right of use of Trust assets by beneficiaries / other persons’.
• ‘Sub-total according to Income Statement’ – this field will be automatically calculated.
• ‘Add: Non-taxable items and amounts claimed for accounting purposes’.
• ‘Less: Tax deductions and special allowances i.t.o. the Income Tax Act’.
• ‘Taxable amount available for distribution/Assessed loss retained in Trust’ – this field will be automatically calculated as follows:
  • ‘Sub-total according to income statement’.
  • ‘Add: Non-taxable items and amounts claimed for accounting purposes’.
  • ‘Less: Tax deductions and special allowances i.t.o. the Income Tax Act’.
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. This amount must be limited to the taxable amount available for distribution. An assessed loss cannot be distributed to/vested in a beneficiary.
• ‘Taxable in the Trust’ – this field will be automatically calculated as follows:
  • ‘Taxable amount available for distribution/assessed loss’.
  • ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
• ‘Source Code’ – Complete a valid source code within the following range:
  • 4212 – Royalties.
  • 4213 – Royalties Loss.
  • 4214 – Other Receipts and Accruals – Profit.

Local Rental Income from the Letting of Fixed Property

This section will display if ‘Y’ was selected for type of local income “Local Rental Income from the letting of Fixed Property” on the form wizard of the return.

Complete the following fields as per the income statement:

• ‘Rental Income’ (excluding local Rental Income vested from other Trusts)’.
• ‘Add: Aggregate local rental income from other Trust(s).’
• ‘Total Rental Income (including local rental Income vested from other Trust(s)).’
• Expenditure (excluding donations):
  • ‘Accounting fees’.
  • ‘Agency fees’.
  • ‘Bad Debts’.
  • ‘Depreciation’.
  • ‘Electricity/Rates and Taxes’.
  • ‘Insurance’.
  • ‘Interest/Finance Charges’.
  • ‘Levies Paid’.
  • ‘Repairs / Maintenance’.
  • ‘Other Expenses (excluding expenses listed above)’.
  • ‘Please provide descriptions relating to other expenses listed above’.
  • ‘Total expenses: This total is auto-calculated on the return.
  • ‘Accounting Profit/Loss’ – This field is auto-calculated as follows:
• Rental income.
• Less: Total expenses.
• ‘Add: Expenses incurred i.r.o. right of use of the Trust assets by beneficiaries / other persons’.
• ‘Add: Amounts claimed for accounting purposes’.
• ‘Less: Tax deductions and special allowances i.t.o the Income Tax Act’.
• ‘Profit/loss’ – this field is auto-calculated as follows:
  • Accounting Profit/Loss.
  • Add: Expenses incurred i.r.o. right of use of Trust assets by beneficiaries / other persons.
  • Add: Amounts claimed for accounting purposes.
  • Less: Tax deductions and special allowances i.t.o. the Income Tax Act.
• ‘Is the Trust a partnership?’ – select either “Yes” or “No”.
• ‘Less: Profit/Loss attributable to the partner(s)’ – only applicable if the Trust is involved in a partnership.
• ‘Taxable amount available for distribution/ Assessed loss retained in Trust’ – this field is auto-calculated as follows:
  • Profit/Loss.
  • Less: Profit/Loss attributable to partner(s).
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
• ‘Taxable in the Trust’ – this field is auto-calculated as follows:
  • Taxable amount available for distribution/Assessed loss retained in the Trust.
  • Less: Amount distributed to / vested in beneficiaries or taxable i.t.o. s7.
• ‘Source Code’
  • Source code 4210 will prepopulate for a profit and source code 4211 will prepopulate for a loss.

Local Business and Trading Income including Crypto Asset(s) (excluding Rental Income from the Letting of Fixed Property and Farming Income)

This section will display if ‘Y’ was selected for the question “Indicate the type of local income received / accrued to the Trust: Business, trade (including crypto asset(s)) or professional income (excluding Rental Income from the letting of Fixed Property and farming)” on the form wizard of the return.

Complete the following income fields as per the financial statements:

• ‘Turnover / Sales’.
• ‘Cost of Sales’.
• ‘Gross Profit / Loss’ – This field is auto-calculated as follows:
  • Turnover / Sales.
  • Less: Cost of Sales.
• Add ‘Income other than turnover’.
• ‘Add: Aggregate local business and trading income (excluding Rental Income from letting of fixed property(ies) and income from Farming Operations) from other Trust(s).’
• ‘Control Total.’

For the requirements of expenditure and losses deductible for the purpose of determining the taxable income from carrying on trade by the Trust, refer to section 11 of the Income Tax Act. Complete the following expenditure fields as per the financial statements:

• ‘Accounting/Consulting/Trust fees’.
• ‘Bad/Doubtful debts’’.
• ‘Capital allowances/Depreciation’.
• ‘Electricity / Rates and Taxes’.
• ‘Entertainment’.
• ‘Insurance (Business related)’.
• ‘Interest / Finance charges’.
• ‘Lease payments’.
• ‘Legal cost’.
• ‘Rental’.
• ‘Repairs/Maintenance’.
• ‘Royalties and licence fees’.
• ‘Salaries and wages’.
• ‘Travel Costs’.
• ‘Other expenditure (excluding items listed above)’.
• ‘Please provide descriptions relating to the other expenditure listed above’.
• ‘Total expenses (excl. Donations)’.
• ‘Accounting Profit/Loss’ – this field is calculated as follows:
  • Gross Profit / Loss.
  • Add: Income other than turnover.
  • Less: Total expenses.

Debit Adjustments (decrease net profit / increase net loss)

Special Allowances Not Claimed in the Income Statement

On eFiling click the dropdown button and select the allowances not credited to the income statement.

• ‘Credit agreement and debtors allowance (hire purchase) (s24)’.
• ‘Credit agreement and debtors allowance (Lay-bye) (s24)’.
• ‘Allowance for future expenditure (s24C)’.
  • S24C applies when income is received in advance while the expenditure under the contract will only be incurred in a subsequent year of assessment.
  • For more information refer to ‘Guide to Building Allowances’ on the SARS website.
• Film allowance (s24F)’
  • S24F has been repealed with effect from 12 December 2013.
  • The section provided for deduction in respect of the cost of production and purchase of films. It applies to films where the principal photography commenced before 1/1/2012 and the expenditure was incurred on or before 31/12/2012.
• ‘Interest incurred’ (s24J)’.
• ‘Cash contributions to a closure rehabilitation Trust Fund or company (s37A)’.
  • This field is applicable from 2018 year of assessment onwards.
  • Complete the field if the Trust qualifies for a deduction of contributions to a Rehabilitation Trust Fund or company in respect of s37A.
• ‘Environmental asset deduction: treatment and recycling (s37B)’
  • This field is applicable from the 2016 year of assessment onwards.
  • Complete this field if the Trust qualifies for a deduction of treatment and recycling in respect of s37B.
• ‘Environmental asset deduction: waste disposal assets (s37B)’
  • This field is applicable from the 2016 year of assessment onwards.
  • Complete this field if the Trust qualifies for a deduction of waste disposal assets in respect of s37B.
• ‘Environmental conservation and maintenance deduction (s37C)’.
• ‘Other (excluding items listed above): If the allowance is not on the list, complete the amount under the “Other (excluding items listed above)” field.
• Please provide descriptions relating to other listed above: Provide descriptions relating to the amount declared on the “Other (excluding items listed above)” field.
• ‘Control Total – this field will be calculated automatically on eFiling.

Credit Adjustments (increase net profit/decrease net loss)

Non-Deductible amounts debited to the Income Statement

On eFiling click the dropdown button and select the items not debited to the income statement.

Below is a list of items available on the pop-up screen. Insert the amount next to the applicable field:

• ‘Accounting interest paid / payable’.
• ‘Accounting loss on disposal of fixed and/or other assets’.
• ‘Amortisation of lease premiums and improvements to leasehold premises’.
• ‘Capital expenditure and/or losses’.
• ‘Depreciation according to financial statements’.
• ‘Expenses not actually incurred in the production of income (s11(a))’.
• ‘Financial assistance (s31)’.
• ‘Interest paid in respect of capitalised leased assets’’.
• ‘Interest, penalties paid in respect of taxes (s23(d))’.
• ‘Lump sum contributions to retirement and / or benefit funds’.
• ‘Prepaid expenditure not allowed under s23H’.
• ‘Amounts in respect of certain (tainted) intellectual property (s23l)’.
• ‘Provision for doubtful debt not deductible in current year’.
• ‘Provision not deductible current year (excluding doubtful debt)’.
• ‘Transfer pricing adjustments’.
• ‘Other (excluding items listed above)’ – If the item is not on the list, complete the amount on the “Other (excluding items listed above)” field.
• ‘Please provide descriptions relating to other listed above’ – Provide descriptions relating to the amount declared on the field “Other (excluding items listed above)” above.
• ‘Control Total – this field will be calculated automatically on eFiling.

Non-Taxable amounts credited to the Income Statement

• On eFiling click the dropdown button and select the items not credited to the income statement.

Below is a list of items available on the pop-up screen. Insert the amount next to the applicable field:

• ‘Accounting interest received / receivable’.
• ‘Accounting profit on disposal of fixed and / or other assets’.
• ‘Amounts previously taxed as received in advance’.
• ‘Receipts and / or accruals of a capital nature’.
• ‘Reversal of provisions’.
• ‘Other (excluding items listed above)’.
• ‘Please provide descriptions relating to other listed above.

‘Control Total’ – This field will be automatically calculated.

Only complete the relevant currency fields (15 blocks) where the adjustments are applicable to the Trust in Rands (no cents).

Below is a list of allowances available on the pop-up screen. Insert the amount next to the applicable field:

• ‘Restraint of trade (s11(cA)’.
• ‘Wear and tear allowance (s11(e))’.
  • For more information refer to Interpretation Note: No. 47 on the SARS website.

From the 2020 year of assessment (YOA), ‘Doubtful Debt Allowance (s11 (j))’ will be replaced by ‘Doubtful debt Allowance – IFRS applied s11(j)(i))’ and ‘Doubtful debt Allowance – IFRS not applied s11(j)(ii))’.

Note that all the above mentioned “Doubtful Debt Allowance” fields will be displayed during the 2020 YOA. Only one of the three fields can be completed:

• ‘Doubtful debt allowances (s11(j))’.
  • This field will not be displayed from the 2021 YOA onwards.
• ‘Doubtful debt allowance – IFRS applied (s11(j)(i))’.
  • Applicable for 2020 tax year onwards.
  • If the amount entered in this field is greater than zero, then the container “Information with regards to Doubtful Debt Allowance Claimed – IFRS Applied (s11(j)(i))”, within the “Tax Allowances / Limitations” container will be displayed in the form.
• ‘Doubtful debt allowance – IFRS not applied (s11(j)(ii))’.
  • Applicable for 2020 tax year onwards.
  • If the amount entered in this field is greater than zero, then the container “Information with regards to Doubtful Debt Allowance Claimed – IFRS not applied (s11(j)(ii))”, within the “Tax Allowances / Limitations” container will be displayed in the form.

Note that you can only enter a value in either the “Doubtful Debt allowance – IFRS applied (s11(j)(i))” or “Doubtful Debt allowance – IFRS not applied (s11(j)(ii))” but not on both fields.

• ‘Amortisation of lump sum contributed to retirement/benefit funds (s11(l))’.
• ‘Depreciable asset allowance (s11(o))’.
  • Under s11(o), a taxpayer can elect to claim a loss in respect of the alienation, loss, or destruction of a qualifying depreciable asset, where certain requirements are met.
  • For more information refer to Interpretation Note: No. 60 on the SARS website.
• ‘Expenditure before commencing trade (s11A)’.
  • Pre-trade expenditure and losses are accumulated until trade commences.
  • If trading does not commence, no pre-trade expenses will be deductible.
  • Note: s11A is not limited to s11(a) expenses but all expenses under s11 (excluding s11(x)), (s11B – this will only be available when period before 11B is repealed).
  • For more information refer to Interpretation Note: No. 33 on the SARS website.
• ‘Machinery, plant, implements, utensils, and articles deduction (s12B)’.
• ‘Manufacturers or hotelkeepers, aircraft, ship, storage and packing of agricultural products deduction (s12C)’.
• ‘Pipelines, transmission, and rail deduction (s12D)’.
• ‘Rolling stock deduction (s12DA)’.
• ‘Airport and port assets deductions (s12F)’.
• ‘Learnership agreements registered /in effect (s12H) – excluding learners with a disability – agreements entered into on or before 1 October 2016’.
  • For more information refer to Interpretation Note: No. 20 on the SARS website.
• ‘Registered learnership agreements completed in current year (s12H) – excluding learners with a disability – agreements entered into on or before 1 October 2016’.
• For more information refer to Interpretation Note: No. 20 on the SARS website.
• ‘Learnership agreements registered / in effect (s12H) for learners with a disability – agreements entered into before 1 October 2016’.
• ‘Registered learnership agreements completed in the current year (S12H) for learners with a disability – agreements entered into before 1 October 2016’.
• ‘Learnership Allowance: Agreements in effect / completed in current year (Agreements entered into on or after 1 October 2016): s12H’.
• ‘Certified Emission Reductions Exemption (s12K- this will only be available when period before 12K is repealed).’
• ‘Allowance for energy efficiency savings (s12L)’.
• ‘Exemption in respect of films (s12O)’.
• ‘Deduction for building(s) used in a manufacturing process (s13)’.
  • Depending on the date of commencement of the erection of the building or improvements to the building, the building has to be wholly or mainly used by the taxpayer or the lessee during the year of assessment for the purpose of conducting in the building any process of manufacture, research and development or any process which in the opinion of the Commissioner is of a similar nature in the course of the taxpayer’s or lessee’s trade, but specifically excluding mining or farming. It is a question of fact, which must be determined on its merits on a case-by-case basis whether a building or an improvement to a building meets these requirements.
  • For more information refer to the ‘Guide to Building’ on the SARS website.
• ‘Hotel building deduction (s13bis)’.
  • S13bis provides for an allowance on the erection of hotel buildings or improvements to such buildings. The allowance is calculated on the cost of erecting the buildings and improvements (other than repairs) which meet certain criteria.
  • For more information refer to the ‘Guide to Building’ on the SARS website.
• ‘Residential buildings deduction (s13ter)’.
  • A residential building annual allowance and a residential building initial allowance were available to a taxpayer who erected residential units under a housing project under s13ter. This section applied to units that were erected on or after 1 April 1982 and before 21 October 2008.
  • For more information refer to the ‘Guide to Building’ on the SARS website.
• ‘Urban Development Zones (UDZ) (s13quat) – erection of a new building this year’.
  • In line with the Minister’s announcement in the 2021 Budget Review, for the changes to be made in section 13quat of the Act, is to extend the UDZ tax incentive by another two years, to 31 March 2023.
  • S13quat provides for an allowance on the cost of the erection, extension, addition, or improvement of any commercial or residential building or part of that building within an urban development zone, which is owned by the taxpayer and is used solely for purposes of that taxpayer’s trade.
• ‘Urban Development Zones (UDZ) (s13quat) – improvements this year’.
  • For more information refer to the ‘Guide to Building’ on the SARS website.
• ‘Commercial buildings deduction (s13quin)’.
  • S13quin provides for an allowance on any new and unused buildings or improvements that are used by the taxpayer wholly or mainly in the production of income in the course of a trade, other than the provision of residential accommodation. The allowance is not apportioned if the building is brought into use for part of the year of assessment.
• ‘Residential units deduction (s13sex)’.
• ‘Low-cost residential unit deduction (s13sept).
  • An allowance under s13sept was introduced to offer relief to employers wishing to transfer ownership of low-cost residential housing to their employees by making use of interest-free loan financing. The section came into operation on 21 October 2008 and applies to a unit disposed of on or after that date and is subject to s36.
• ‘Prepaid expenditure not limited by s23H’.
  • Section 23H limits the deduction of an expense where none of the goods/service, or only part thereof, goods/service rendered in the year of assessment.
• ‘Research And Development Deduction (s11D)’.
  • Section 11D refers to deductions in respect of scientific or technological research and development that was undertaken. This deduction is applicable to years of assessment prior to 2016 and written approval for the research & development must be obtained from the Department of Science & Technology in order to claim the deduction.
  • Where there was a delay in obtaining the written approval from the Department of Science and Technology at the time of submission of the return, the Trust has an option to submit an objection for that year of assessment using the ADR1 form, even if that year of assessment has prescribed.
• ‘Deduction in respect of Venture Capital Company shares (s12J)’.
  • This field is only available up to the 2014 year of assessment. From the 2015 year of assessment onwards, a separate container is available for declaration of an investment in venture capital company shares.

Allowance/Deductions granted in previous Years of Assessment and now Reversed.

On eFiling click the dropdown button and select the items not granted in previous years of assessment and that have now been reversed.

Below is a list of items available of the pop-up screen. Insert the amount next to the applicable field:

• ‘Credit agreement and debtor’s allowance (hire purchase) (s24)’.
• ‘Credit agreements and debtors allowance (Lay-bye) (s24)’.
• ‘Allowance for future expenditure (s24C)’.

Note that from the 2021 YOA you can reverse ‘Doubtful debt’ claimed in the previous years. For the 2021 YOA all three fields will appear.

• ‘Doubtful debt allowance (s11(j))’.
  • This field will not be displayed from 2021 onwards.
• ‘Doubtful debt allowance IFRS applied (s11(j)(i))’.
  • This field is applicable from the 2021 YOA onwards.
• ‘Doubtful debt allowance IFRS not applied (s11(j)(ii))’.
  • This field is applicable from the 2021 YOA onwards.
• ‘Other (excluding items listed above)’ – If the item is not on the list, complete the amount on the “Other (excluding items listed above)” field.
• ‘Please provide descriptions relating to other listed above’ – Provide descriptions relating to the amount declared on the field “Other (excluding items listed above)” above.
• ‘Control Total – this field will be calculated automatically on eFiling.

Amounts not credited to the Income Statement

On eFiling click the dropdown button and select the items not credited to the income statement.

Below is a list of items available of the pop-up screen. Insert the amount next to the applicable field:

• ‘Amounts received in advance’.
• ‘Amounts accrued but not received’.
• ‘Closing value of consumable stock and spare parts’.
• ‘Closing balance of stock values of work in progress (s22(2A))’.
• ‘Interest accrued (s24J)’.
• ‘Loans / advances granted by an insurer (para. (m) of def. of “gross income”)’.
• ‘Transfer pricing adjustment’.
• ‘Expenses incurred i.r.o. right of use of Trust assets by beneficiaries/other persons’.
• ‘Other (excluding items listed above)’ – If the item is not on the list, complete the amount on the “Other (excluding items listed above)” field.
• ‘Please provide descriptions relating to other listed above’ – Provide descriptions relating to the amount declared on the field “Other (excluding items listed above)” above.
• ‘Control Total – this field will be calculated automatically on eFiling.

Recoupment of Allowance previously Granted

Certain allowances previously allowed in the determination of the taxable income and recovered or recouped during this year of assessment must be reflected.

On eFiling click the dropdown button and select the items not credited to the income statement.

Below is a list of items available of the pop-up screen. Insert the amount next to the applicable field:

• ‘Bad debts’.
• ‘Wear and tear (s8(4))’.
• ‘Recoupments (excl. wear and tear) (s8(4)).’
• ‘Lease charges (s8(5))’.
• ‘Reduction in Debt (s19)’.
• ‘Other (excluding items listed above)’ – If the item is not on the list, complete the amount on the “Other (excluding items listed above)” field.
• ‘Please provide descriptions relating to other listed above’ – Provide descriptions relating to the amount declared on the field “Other (excluding items listed above)” above.
• ‘Control Total’ – this field will be calculated automatically on eFiling.

Determination of Profit / Loss

‘Profit/Loss’ – This field is auto-calculated on the return as follows:

• Accounting Profit/Loss
• Less: Debit Adjustments: Non-taxable amounts credited to the income statement: Control Total.
• Less: Debit Adjustments: Special Allowances not claimed in the income statement: Control Total.
• Plus: Credit Adjustments: Non-deductible amounts debited to the income statement: Control Total.
• Plus: Allowances/Deductions granted in previous years of assessment and now reversed: Control Total.
• Plus: Amounts not credited to the income statement: Control Total.
• Plus: Recoupment of allowances previously granted: Control Total.

Is the Trust in a partnership? – Select ‘Y’ or ‘N’.

• If ‘Y’ insert the ‘Profit/Loss attributable to partner(s)’.

‘Taxable amount available for distribution/assessed loss retained in Trust’ – This field is auto-calculated on the return as follows:

• Profit/Loss.
• Less: Profit/Loss attributable to partner(s).

‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.

• This amount cannot be greater than the taxable amount available for distribution. An assessed loss cannot be distributed to/vested in beneficiaries.

‘Taxable in Trust’ – This field will be auto-calculated.

‘Source Code’

• This field is mandatory.
• Please refer to the ‘Find a Source Code” tool which is available on the SARS website to select a valid source code.
• Source code 3006 is valid from 1999 – 2006.
• Source code 3025 is valid from 2007 onwards.
• The following source codes are excluded:
  • All codes starting with ’01’, ‘26’, ‘30’ (except 3006 and 3025) and ‘35’.
  • 4210, 4211, 4280, 4281, 4282, 4283, 4284, 4285, 4286, 4287.
• Select a Profit Code to indicate credit balance and a Loss code to indicate a debit balance.
• For Rehabilitation Trusts, the source code 3006 must be used for years of assessment 1999 – 2006 and the source 3025 for years of assessment 2007 and onwards.

‘Were any transactions relating to crypto asset(s) included in the local business and trading information above?’ – Select ‘Y’ or ‘N’.

• If ‘Y’, complete the following fields:
  • Gross crypto asset(s) amount included in turnover / sales.
  • Did the transactions relating to crypto asset(s) result in a profit? (Select ‘Y’ or ‘N’).

One of the following two fields will be displayed based on the profit or loss source code selected:

• ‘Profit relating to crypto asset(s) trading’.
• ‘Loss relating to crypto asset(s) trading’.

Capital Gain Vested in this Trust due to Disposal of an Asset(s) by another Local Trust

Complete the ‘Amount of capital gains vested in this Trust due to a disposal of an asset(s) from other foreign Trusts’. From the 2023 year of assessment, this field will be prepopulated with the Aggregate Local Capital Gain from other Trust(s) field (completed in this return). Should an Aggregate Local Capital Loss be vested (due to a vested right) the aggregate amount of all capital losses should be included in the Aggregate container. In future years this process will be automated.

• Amount of capital gains vested in this Trust due to a disposal of an asset(s) by a foreign Trust(s).

‘Source Code’

• Source code 4250 will populate next to the field.

Reduction of Local Assessed Capital Loss due to Debt Reduction

• This section would display if you selected ‘Y’ to the question: “Was the reduction i.r.o. a local asset?” on page one of the return.
• Complete the ‘Amount of debt reduction’ as per the financial statement.

Foreign Amount(s) Distribution to the Trust / Vested in the Trust as a Beneficiary of another Trust(s) or deemed to have Accrued in Terms of S7

• If Yes is selected on the additional question to the wizard questions that states, “Was any foreign amount distributed to the Trust/ vested in the Trust as a beneficiary of another Trust or deemed to have accrued in terms of s7 during this year of assessment?” A new container will be displayed, and the following container need to be completed:

Details of other Trust(s)

• Trust Name.
• Trust Registration Number (as per Letters of Authority).
• Trust Tax Reference Number.
  • Note: The fields pertain to details of other Trust(s), where income/capital gain was vested from.

Details of Foreign Amount(s) Received or Vested from other Trust(s)

Note: not all these fields are mandatory but at least one should be completed.

• ‘Foreign Interest.’
• ‘Foreign Tax credits for the foreign interest.’
• ‘Foreign Dividends.’
• ‘Foreign Capital Gain.’
• ‘Foreign Capital Loss.’
• ‘Foreign Farming income.’
• ‘Imputed Net Income from Controlled Foreign Companies (CFC).’

‘Note: These amounts are amounts vested (or deemed amounts) from other Trust(s), excluding income amounts from the Trust completing the return. The amounts stipulated will be aggregated in the Aggregate Foreign Amounts Received or Vested from other Trust(s).’

Aggregate Foreign Amount(s) Received or Vested from other Trust(s)

The Aggregate Foreign Amount(s) Received or Vested from Other Trust(s) container is a prepopulated container. All similar fields specified under the Details of the Foreign Amount(s) Received or Vested from Other Trust(s) containers are aggregated and transferred to the various associated income stream containers, which is added to the Gross Receipt and Accruals fields, used in aid of calculating the Aggregate Foreign Amount(s) Received or Vested in Trust amounts.

• ‘Aggregate Foreign Interest from other Trust(s)’
• ‘Aggregate Foreign Tax credits for the foreign interest from other Trust(s)’
  • Note: Foreign Tax Credits will be excluded from received or vested from other Trust(s)
  • The taxpayer will declare all foreign tax credits received or vested from other Trust(s) with their own foreign tax credits and will declare as per normal process
• ‘Aggregate Foreign Dividends from other Trust(s)’
• ‘Aggregate Foreign Capital Gain from other Trust(s)’
• ‘Aggregate Foreign Farming income from other Trust(s)’
• ‘Aggregate Imputed Net Income from Controlled Foreign Companies (CFC) from other Trust(s)’
• ‘Aggregate Other Foreign Income from other Trust(s).

Note: Should the Trust (taxpayer) wish to claim any foreign tax credit, this should be claimed together with other tax credits. In future years a container for Foreign Tax Credits from other Trusts will be provided.

Foreign Amounts Received and/or Accrued

Foreign Interest Income

This section would display if you selected ‘Y’ to the question “Indicate the type of foreign amounts received/accrued to the Trust: Interest” on the tax form wizard of the return.

Complete the applicable fields below:

• ‘Gross receipts and accruals’ (excluding foreign interest income vested from other Trust(s)) – Complete the total amount of the receipts and accruals relating to foreign interest as per financial statements.
• ‘Add: Aggregate foreign interest income from other Trust(s).’
• Total Gross receipts and accruals (including foreign interest income vested from other Trust(s)).’
• ‘Less: Allowable Expenses attributable to foreign income (excluding donations)’.
• ‘Taxable amount available for distribution / Assessed loss retained in Trust’ – this field will be automatically calculated as follows:
  • Gross receipts and accruals.
  • Less: Expenses (excluding donations).
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. This amount must be limited to the taxable amount available for distribution. An assessed loss cannot be distributed to/vested in a beneficiary.
• ‘Taxable in a Trust’ – this field will be automatically calculated as follows:
  • Taxable amount available for distribution/assessed loss.
  • Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7.
  • ‘Source Code’ – code 4218 will pre-populate in this field (foreign interest cannot create an assessed loss).
• ‘Foreign tax credits on foreign interest distributed/vested in beneficiaries’.
  • If any withholding tax was paid in another country i.r.o. the foreign interest received, this amount will appear on the certificate received from the institution administering the investment. Declare the gross amount of withholding tax relating to the foreign interest distributed/vested in beneficiaries.
• ‘Foreign tax credits on foreign interest retained in the Trust’.
  • If any withholding tax was paid in another country i.r.o. the foreign interest received, this amount will appear on the certificate received from the institution administering the investment. Declare the gross amount of withholding tax relating to the foreign interest taxable in the Trust next to source code 4113.
• ‘Was any of the foreign interest income declared in the gross receipts and accruals above received from a foreign Trust?’ – select ‘Y” or ‘N’.
  • If ‘Y’, complete the amount of foreign interest income from a foreign Trust.

Foreign Capital Gains/Losses

This section would display if you selected ‘Y’ to the question “Did the Trust dispose of any foreign assets attracting capital gain or loss (including crypto asset(s))?” on the tax form wizard of the return.

• This section will be repeated according to the number of disposals indicated on the return.

Complete the following fields:

• ‘Proceeds’.
• ‘Base Cost’.
• ‘Exclusion/Rollover’.
• ‘Capital Gain/Loss’ – this amount will be auto-calculated as follows:
  • Proceeds.
  • Less: Base Cost.
  • Less: Exclusion/ Rollover.
• ‘Add: Clogged loss included in amounts listed above to be carried forward (para 39 of the Eighth Schedule)’.
• ‘Less: Prior year clogged loss brought forward and deductible from the capital gain listed above derived from same connected person (para 39 of the Eighth Schedule)’
• ‘Capital Gain available for distribution/Capital Loss retained in Trust’– this amount is calculated as follows:
  • Capital Gain/Loss.
  • Plus: Clogged losses included in amounts listed above to be carried forward (para. 39 of the Eighth Schedule).
  • Less: Prior years’ clogged loss brought forward and deductible from the capital gains listed above derived from same connected person (para 39 of the Eighth Schedule).
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. para 68 –72 of the Eighth schedule’ – Complete the amounts that relate to the following paragraphs:
  • Attribution of capital gain to spouse – paragraph 68.
    • Any donation, settlement, other similar disposition must be disregarded when determining a person’s aggregate capital gain. This amount must be considered when determining the aggregate capital gain or loss of the person’s spouse.
  • Attribution of capital gain to parent of minor child – paragraph 69.
    • Any donation, settlement or other disposition by a parent or any other person for the benefit of a child’s must be disregarded when determining the child’s aggregated capital gain and must be considered when determining aggregate capital gain or loss of that parent.
  • Attribution of capital gain subject to conditional vesting – paragraph 70.
    • If a person donated, settlement, or any disposition subject to a stipulation or condition such that the distribution will not vest in the beneficiaries of such distribution. Capital gain must be disregarded when determining the aggregate capital gain of a beneficiary and will be considered when determining the aggregate capital gain or loss of the person retaining the donation, settlement, or other disposition.
  • Attribution of capital gain subject to revocable vesting – paragraph 71.
    • Where a resident beneficiary has a right to any donation settlement or disposition subject to a revocation, capital gain must be disregarded when determining the aggregate capital gain of that beneficiary. Capital gain will be considered when determining the aggregate capital gain or loss of the person retaining the power of revocation.
  • Attribution of capital vesting in non–resident – paragraph 72.
    • If a South African resident made a donation settlement or disposition to any person (excluding a non-resident public benefit organization) and that capital gain has during the year vested in or is treated as having vested in any person who is not a resident (excluding a Controlled Foreign Company in relation to that resident), capital gain must be disregarded when determining the aggregate capital gain or losses of the person in whom it vest and taken into account when determining capital gain or loss of that resident.
• ‘Taxable in the Trust (Vested in foreign beneficiaries)’,
• ‘Taxable in the Trust (not vested in beneficiaries)’,
• ‘Source Code’:
  • Source code 4252 will prepopulate for a capital gain and source code 4253 will prepopulate for a capital loss.
• ‘Main Asset Type Source Code’:
  • Refer to Appendix B for a list of the valid main asset type source codes.
• ‘Foreign Tax Credit i.r.o. Capital Gain Distributed/Vested In Beneficiaries’.
• ‘Foreign Tax Credit i.r.o. Capital Gain/Loss Retained In the Trust (4114)’.

Foreign Dividends Income

This section would display if you selected ‘Y’ to the question “Indicate the type of foreign income received/accrued to the Trust: Dividends” on the tax form wizard of the return.

Complete the applicable fields below:

• ‘Gross foreign dividends subject to SA normal tax’ (excluding foreign dividend income vested from other Trust(s)’.
• ‘Add: Aggregate foreign dividend income from other Trust(s).’
• ‘Total Gross receipts and accruals (including foreign dividend income vested from other Trust(s)).’
• ‘Less: Allowable administration expenses attributable to foreign dividend income (excluding donations)’.
  • Only applicable to the 2012 year of assessment and prior years. Expenses in respect of foreign dividends are disallowed from the 2013 year of assessment onwards in terms of the Income Tax Act.
  • Complete the total amount of the expenses incurred relating to foreign interest as per the financial statements.
• ‘Taxable amount available for distribution/assessed loss retained in the Trust’.
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’.
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. This amount must be limited to the Taxable amount available for distribution. An assessed loss cannot be distributed to/vested in beneficiaries.
• ‘Taxable in the Trust’
  • This field will be automatically calculated as follows:
    • Taxable amount available for distribution/assessed loss retained in the Trust.
    • Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7.
  • Note: if the ‘Taxable amount available for distribution/assessed loss retained in Trust’ is less than zero, this field will default to zero.
  • ‘Source Code’
    • Code 4216 is applicable from the 2013 year of assessment.
    • Code 4217 is applicable from the 1999-2012 year of assessment only.
• ‘Foreign tax credits on foreign dividends distributed/vested in beneficiaries’.
• ‘Foreign tax credits on foreign dividends retained in the Trust’.
  • If any withholding tax was paid i.r.o. the foreign dividend received, this amount will appear on the certificate received from the institution administering the investment. Declare the gross amount of withholding tax relating to the foreign dividends.
  • The exemption in terms of section 10B(3) i.r.o. foreign dividends subject to SA normal tax will be applied programmatically by SARS.
• ‘Was any of the foreign dividend income declared in the gross foreign dividends above received from a foreign Trust?’ – select ‘Y” or ‘N’.
  • If ‘Y’, complete the amount of foreign dividend income from a foreign Trust.

Foreign Farming Income

This section would display if you selected ‘Y’ to the question “Indicate the type of foreign income received/accrued to the Trust: Farming” on the tax form wizard of the return.

All income derived directly from any foreign farming operations will be regarded as foreign farming income. Income from foreign farming activities will also include, for example, grazing fees derived by a person who carries on farming in a foreign country.

Complete the following applicable fields:

• ‘Gross receipts and accruals’.
• ‘Add: Aggregate foreign farming income from other Trust(s)’.
• Total Gross receipts and accruals (including foreign farming income vested from other Trust(s)).’
  • Only applicable to the 2016 year of assessment and prior years.
  • Complete the total amount of the receipts and accruals relating to foreign farming income as per the financial statements.
• ‘Less: Allowable expenses attributable to other foreign income (excluding donations)’.
  • Only applicable to the 2016 year of assessment and prior years.
• ‘Farming profit / loss (excl. allowable admin. expenses and donations)’.
  • Only applicable from the 2017 year of assessment onwards.
• ‘Add: Expenses incurred i.r.o. right of use of the Trust assets by beneficiaries / other persons’.
• ‘Sub-total according to income statement’:
  • This field is only applicable to the 2016 year of assessment and prior years and will be calculated automatically on the return.
• ‘Add: Non-taxable items and amounts claimed for accounting purposes’:
  • Only applicable to the 2016 year of assessment and prior years.
• ‘Deduct: Allowable administration expenses (excluding donations)’:
  • Only applicable from the 2017 year of assessment onwards.
• ‘Less: Tax deductions and special allowances i.t.o. the Income Tax Act’:
  • Only applicable to the 2016 year of assessment and prior years.
• ‘Taxable amount available for distribution/assessed loss retained in the Trust’:
  • This field will be calculated automatically on the return.
• ‘Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7’:
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. This amount must be limited to the Taxable amount available for distribution. An assessed loss cannot be distributed to/vested in beneficiaries.
  • ‘Taxable in Trust’:
    • This field will be calculated automatically on the return as follows:
      • Taxable amount available for distribution/assessed loss.
      • Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7.
  • ‘Source Code’:
    • Code 0192 is for a foreign farming profit and code 0193 is for a foreign farming loss.
• ‘Foreign tax credits on foreign Farming income distributed/vested in beneficiaries’.
• ‘Foreign tax credits on foreign Farming income retained in Trust’.
  • Complete the amount next to source code 4119.

Imputed Net Income from Controlled Foreign Companies

This section would display if you selected ‘Y’ to the question “Imputed net income from controlled foreign companies” on page one of the return.

Any income earned by a controlled foreign company (CFC) may effectively be taxed in a resident’s hands in terms of the provision of section 9D. If such resident has a participation interest (shareholding or votes) in the CFC.

Complete the following applicable fields:

• ‘Total Imputed Net Income.
  • Complete the total imputed net income from controlled foreign companies as per the financial statements.
• ‘Add: Aggregate Imputed Net Income from controlled foreign companies from other Trust(s).’
• ‘Total Imputed Net Income (including imputed net income from controlled foreign companies vested from other Trust(s)).’
• ‘Less: Amount distributed / vested in beneficiaries or taxable i.t.o. s7’.
• ‘Taxable in the Trust’:
  • This field will be auto calculated.
  • This is applicable to the following source code 4246.
  • It is derived as follows:
    • ‘Total Imputed Net Income’.
    • ‘Less: Amount distributed/vested in beneficiaries’.
• ‘Foreign Tax credits on Imputed Net Income distributed/vested in beneficiaries.
• ‘Foreign Tax credits on Imputed Net Income from Controlled Foreign Companies retained in the Trust.
  • This is applicable to the following source code 4122.

Other Foreign Income (excluding Dividends, Interest, Capital Gains and Farming)

This section would display if you selected ‘Y’ to the question “Indicate the type of foreign income received/accrued to the Trust: Other foreign income” on page one of the return.

Complete the following applicable fields:

• ‘Gross receipts and accruals’ (excluding other foreign income vested from other Trust(s))
• ‘Add: Aggregate other foreign income from other Trust(s).
• ‘Total Gross receipts and accruals (including other foreign income vested from other Trust(s)).’
• ‘Less: Allowable expenses attributable to other foreign income (excluding donations)’.
• ‘Add: Expenses incurred i.r.o. right of use of Trust assets by beneficiaries/other persons’
• ‘Sub-total according to Income Statement’.
  • This field will be calculated automatically on the return.
• ‘Add: Non-taxable items and amounts claimed for accounting purposes’.
• ‘Less: Tax deductions and special allowances i.t.o. the Income Tax Act’.
• ‘Taxable amount available for distribution / Assessed loss retained in the Trust’:
  • This field will be calculated automatically on the return.
• ‘Less: Amount distributed to / vested in beneficiaries or taxable i.t.o. s7’:
  • Section 7 deals with the rules/conditions when income is deemed to have accrued or to have been received. This amount is limited to the taxable amount available for distribution. An assessed loss cannot be distributed to / vested in a beneficiary.
• ‘Taxable in the Trust’ – This field will be automatically calculated on the return as follows:
  • Taxable amount available for distribution/assessed loss retained in the Trust.
  • Less: Amount distributed to/vested in beneficiaries or taxable i.t.o. s7.
• ‘Source Code’:
  • Code 4220 is for other foreign profit and code 4221 is for other foreign losses.
• ‘Foreign tax credits on other foreign income distributed/vested in beneficiaries’
• ‘Foreign tax credits on other foreign income retained in the Trust’
  • Complete the amount next to source code 4110.
• ‘Was any of the other foreign income declared in the gross receipts and accruals above received from a foreign Trust?’ – select ‘Y” or ‘N’.
  • If ‘Y’, complete the amount of foreign income from a foreign Trust.

Capital Gain Vested in this Trust due to Disposal of an Asset(s) from other Foreign Trust(s)

Complete the ‘Amount of capital gains vested in this Trust due to a disposal of an asset(s) from other foreign Trusts’. From the 2023 year of assessment, this field will be prepopulated with the Aggregate Foreign Capital Gain from other Trust(s) field (completed in this return). Should an Aggregate Foreign Capital Loss be vested (due to a vested right) the aggregate amount of all capital losses should be included in the Aggregate container. In future years this process will be automated.

• Amount of capital gains vested in this Trust due to a disposal of an asset(s) by other foreign Trust(s).

‘Source Code’

• Source code 4252 will populate next to the field.

Reduction of Foreign Assessed Capital Loss due to Debt Reduction

• This section would display if you selected ‘Y’ to the question “Was the reduction i.r.o. a foreign asset?” on page one of the return.
• Complete the amount of debt reduction next to source code 4255.

Capital Gain/Loss

Local/Foreign Capital Gains/Losses

Introduction

Capital Gains Tax (CGT) provisions became effective from 1 October 2001. The Eighth Schedule of the Income Tax Act determines a taxable capital gain or assessed capital loss and section 26A of the Income Tax Act provides that a taxable capital gain is included in taxable income.

A CGT event is triggered by the disposal (or deemed disposal) of an asset. Only the gain or loss attributable from 1 October 2001 to date of disposal will be subject to the CGT.

• An asset is defined as widely as possible and includes any property of any nature and any interest therein.
• A disposal covers any event, act, forbearance, or operation of law, which results in a creation, variation, transfer, or extinction of an asset. It also includes:
  • The sale, donation, expropriation, conversion, grant, cession, exchange or any other alienation or transfer of ownership of an asset;
  • The forfeiture, termination, redemption, cancellation, surrender, discharge, relinquishment, release, waiver, renunciation, expiry, or abandonment of an asset;
  • The scrapping, loss, or destruction of an asset;
  • The vesting of an interest in an asset of a Trust in a beneficiary;
  • The distribution of an asset by a company to a holder of shares;
  • The granting, renewal, extension, or exercise of an option; or
  • The decrease in value of a person’s interest in a company, Trust or partnership of value shifting arrangement.

Once an asset is disposed of, the amount that is received by (or which accrues to) the seller of the asset constitutes the proceeds/income from the disposal.

The base cost of the asset is generally the expenses that were actually incurred in obtaining the asset, together with the following:

• Expenses directly related to the asset’s improvement.
• Expenses and direct costs in respect of its acquisition and disposal of the asset.
• Certain holding costs.
• Note: The base cost does not include any amounts otherwise allowed as a deduction for income tax purposes.

The annual exclusion will be applied programmatically by SARS, and you are therefore not required to complete this ‘exclusion’ on the return.

• The annual exclusion of a natural person and a special Trust type a) (referred to in section 1(1) paragraph (a) of the definition of “special Trust”) is R30 000 for the 2016 year of assessment and R40 000 from the 2017 year till to date of assessment.
• During the assessment process all capital gains and/or losses are added together and thereafter the sum of such capital gains and losses is reduced by the annual exclusion, limited to the amount of the gain/loss.
• Where a natural person dies during the year of assessment, the annual exclusion is increased to R300 000.
• The exclusion applies to gains as well as losses.
• The unutilised portion of the annual exclusion cannot be carried forward to a following year of assessment.

The inclusion rate is 33.3% for the 2016 year of assessment and 40% from the 2017 year of assessment to date.

• Where a net capital gain for the current year of assessment has been determined, such amount is multiplied by the inclusion rate to determine the taxable capital gain.
• The result is included in the taxable income for that year of assessment.
• Note: this calculation is done programmatically during the assessment process.

A capital loss can only be offset against a capital gain, and not against normal taxable income.

The capital gain/loss must be determined by calculating the difference between the “Proceeds” and “Base Cost” (after considering Exclusions / Adjustments and Rollover base cost).

For more detailed information please refer to the ‘Comprehensive Guide to Capital Gains Tax’ which is available on the SARS website.

• In the event the Taxpayer selects a “No” to the questions “Did the Trust receive capital gains from other local/foreign Trust on the wizard, however enters an amount(s) within the local or foreign amount(s) Received or Vested from Other Trust(s) for Capital Gains under the Details of Local/Foreign amount(s) Received or Vested from Other Trust(s) containers in the Income Distribution Schedule, an automatic change on wizard will be done, changing the question from a “No” to a “Yes” and bringing about the associated income container for Local or Foreign Capital Gains/Loss, in aid of determining the “Taxable in Trust” amount and associated source code.
  • If the “No” was automatically changed to a “Yes” on the wizard and the associated income container was displayed for completion, however the taxpayer realized that an error was made and deletes the amount specified from the Local/Foreign amount(s) Received or Vested from Other Trust(s) for Local / Foreign Capital Gains under the Details of Local/Foreign amount(s) Received or Vested from Other Trust(s) container in the Income Distribution Schedule, the form will undo the “Yes”, change it back to a “No” on the wizard and delete the associated income container.
• In the event the Taxpayer selects a “No” to the questions “Did the Trust dispose of any local/foreign assets attracting capital gain or loss (including crypto asset(s)?” on the wizard, however enters an amount(s) within the Local or Foreign amount(s) Received or Vested from Other Trust(s) for Capital Loss under the Details of Local/Foreign amount(s) Received or Vested from Other Trust(s) containers in the Income Distribution Schedule, an automatic change on wizard will be done, changing the question from a “No” to a “Yes” and bringing about the associated income container for Local or Foreign Capital Gain / Loss, in aid of determining the “Taxable in Trust” amount and associated source code.
  • If the “No” was automatically changed to a “Yes” on the wizard and the associated income container was displayed for completion, however the taxpayer realized that an error was made and deletes the amount specified from the Local/Foreign amount(s) Received or Vested from Other Trust(s) for Local/Foreign Capital Loss under the Details of Local/Foreign amount(s) Received or Vested from Other Trust(s) container in the Income Distribution Schedule, the form will undo the “Yes”, change it back to a “No” on the wizard and delete the associated income container.

Completing The Return

The CGT section would display if you selected ‘Y’ to the question “Did the Trust dispose of any local assets attracting capital gain or loss (including crypto asset(s))?” on the tax form wizard of the return.

• This section will be repeated according to the number of disposals indicated on the return.

Complete the following fields:

• ‘Proceeds’.
• ‘Base Cost’.
• ‘Exclusion/Rollover’.
• ‘Capital Gain/Loss’ – this amount will be auto-calculated as follows:
  • Proceeds.
  • Less: Base Cost.
  • Less: Exclusion/ Rollover.
• ‘Add: Clogged loss included in amounts listed above to be carried forward (para. 39 of the Eighth Schedule)’.
• ‘Less: Prior year clogged loss brought forward and deductible from the capital gain listed above derived from same connected person (para. 39 of the Eighth Schedule)’.
• ‘Capital Gain available for distribution/ Capital Loss retained in the Trust’– this amount is calculated as follows:
  • Capital Gain/Loss.
  • Plus: Clogged losses included in amounts listed above to be carried forward (para 39 of the Eighth Schedule).
  • Less: Prior years’ clogged loss brought forward and deductible from the capital gains listed above derived from same connected person (para 39 of the Eighth Schedule).
• ‘Less: Amount distributed to / vested in beneficiaries or taxable i.t.o. para 68 –72 of the Eighth schedule’ – Complete the amounts that relate to the following paragraphs:
  • Attribution of capital gain to spouse – paragraph 68
    • Any donation, settlement, other similar disposition must be disregarded when determining a person’s aggregate capital gain. This amount must be considered when determining the aggregate capital gain or loss of the person’s spouse.
  • Attribution of capital gain to parent of minor child – paragraph 69
    • Any donation, settlement or other disposition by a parent or any other person for the benefit of a child’s must be disregarded when determining the child’s aggregated capital gain and must be considered when determining aggregate capital gain or loss of that parent.
  • Attribution of capital gain subject to conditional vesting – paragraph 70
    • If a person donated, settlement, or any disposition subject to a stipulation or condition such that the distribution will not vest in the beneficiaries of such distribution. Capital gain must be disregarded when determining the aggregate capital gain of a beneficiary and will be considered when determining the aggregate capital gain or loss of the person retaining the donation, settlement, or other disposition.
  • Attribution of capital gain subject to revocable vesting – paragraph 71
    • Where a resident beneficiary has a right to any donation settlement or disposition subject to a revocation, capital gain must be disregarded when determining the aggregate capital gain of that beneficiary. Capital gain will be considered when determining the aggregate capital gain or loss of the person retaining the power of revocation.
  • Attribution of capital vesting in non–resident – paragraph 72
    • If a South African resident made a donation settlement or disposition to any person (excluding a non-resident public benefit organization) and that capital gain has during the year vested in or is treated as having vested in any person who is not a resident (excluding a Controlled Foreign Company in relation to that resident), capital gain must be disregarded when determining the aggregate capital gain or losses of the person in whom it vest and taken into account when determining capital gain or loss of that resident.
• ‘Taxable in Trust (Vested in Foreign Beneficiaries)’.
• ‘Taxable in Trust (not vested in beneficiaries)’.
• ‘Source Code’.
  • Source code 4250 will pre-populate for a capital gain and source code 4251 will prepopulate for a capital loss.
• ‘Main Asset Type Source Code’
  • Refer to Appendix B for a list of the valid main asset type source codes.

Note: The annual exclusion and inclusion rate and carry forward losses will be calculated by SARS.

Calculation of the qualifying section 12H Learnership Allowance for this year of assessment in respect of agreements entered on or after 1 October 2016

Section 12H has been extended to 1 April 2024.

The learnership incentive is intended to encourage skills development and job creation. The following tax deductions will be considered in respect of the entering and completion of such registered learnership agreements as defined in s12H of the Income Tax Act.

• Persons without a disability:
  • NQF 1- 6 = R40 000
  • NQF 7 – 10 = R20 000
• Persons with a disability:
  • NQF 1- 6 = R60 000
  • NQF 7- 10 = R50 000

On the return, complete the number of learners (No. of Learners) and their respective allowance(s) calculated (Allowances calculated) on the following details:

• “Learnership agreements registered/in effect”
  • Learners without a disability.
  • Learners with a disability.
• “Registered learnership agreements completed in current year”:
  • Learners without a disability.
  • Learners with a disability.

Tax Allowances/Limitations

• Did the Trust enter into an instalment sale agreement as referred to in s12DA to use the rolling stock as an asset to generate income? – Select ‘Y’ or ‘N.’
• If “Yes” is selected on the above question, “Was the rolling stock brought into use on or before 28 February 2022?” will display – Select ‘Y’ or ‘N’.
• Was the allowance claimed in term of s12F only in relation to assets used directly in the production of income? – Select ‘Y’ or ‘N.’
• If “Yes” is selected on the above question “Was the asset brought into use on or before 28 February 2022?” will display– Select ‘Y’ or ‘N’.

Urban Development Zone – s13quat

• ‘Is the building for which the Trust is claiming an allowance in an approved demarcated zone?’ – Select ‘Y’ or ‘N’.
• Was the building or part of the building brought into use after 31 March 2023? Select ‘Y’ or ‘N’.
• ‘Did the Trust receive a certificate(s) issued by the municipality confirming that the building(s) for which the Trust is claiming an allowance is in an urban development zone?’ – Select ‘Y’ or ‘N’.
• ‘Did the Trust erect, extend, add to, or improve the building(s) for which the Trust is claiming an allowance with the sole purpose of disposing thereof directly on completion?’ – Select ‘Y’ or ‘N’.
  • ‘If No, state the total amount incurred for the erection, extension, addition or improvement of building(s)’.
• ‘Did the Trust purchase the building(s) or part thereof from a developer?’ – Select ‘Y’ or ‘N’.
  • ‘If Yes, state the purchase price of the building(s) or part thereof’.
  • ‘State the amount of the purchase price deemed to be cost incurred by the Trust in terms of s13quat(3B)’.
• ‘Did the Trust use the building(s) erected, extended, improved, or added on to in use solely for the trade of the Trust during the year of assessment?’ – Select ‘Y’ or ‘N.’
• ‘Did the Trust incur costs for the erection, extension or addition relating to low cost housing (s13quat (3A))?’ – Select ‘Y’ or ‘N.’
• ‘Is the Trust a developer as envisaged in s13quat? – Select ‘Y’ or ‘N’.

If ‘Y’:

• Did the Trust submit the necessary forms as prescribed in s13quat (10A)? – Select ‘Y’ or ‘N’.
• Did the Trust submit the necessary forms as prescribed in s13quat (4)? – Select ‘Y’ or ‘N’.

Energy Efficiency Savings – s12L

• ‘Has the Trust obtained a certificate issued by SANEDI in respect of energy efficiency savings for the purposes of claiming a s12L allowance’ – Select ‘Y’ or ‘N’.

Information with regards to Doubtful Debt Allowance Claimed – IFRS Applied: s11(j)(i)

This section will only be displayed if you entered a value greater than zero in the question “Doubtful Debt Allowance (11(j)(i)) – IFRS applied” on the tax return wizard of the form.

The following rates will be displayed on the form:

• Provision amount (Rate = 25%).
• Allowance amount (Rate = 25%).
• Provision amount (Rate = 40%).
• Allowance amount (Rate = 40%).

Complete the “Accounting Provisions” for each rate displayed. This will auto-calculate the “Allowance” amount (per rate).

“Indicate whether a directive was issued by SARS, approving the 85% rate.” By selecting the check box.

• When you have selected the check box, the 85% rate field will display.
• Complete the “Accounting Provisions” for the 85% rate displayed. This will auto-calculate the “Allowance” amount.

Information with regards to Doubtful Debt Allowance Claimed – IFRS not applied (s11 (j)(ii))

This section will only be displayed if you entered a value greater than zero in the question “Doubtful Debt Allowance (11(j) (ii)) – IFRS not applied” on the tax return wizard of the form.

The following rates will be displayed on the form:

• Provision amount (Rate = 25%).
• Allowance amount (Rate = 25%).
• Provision amount (Rate = 40%).
• Allowance amount (Rate = 40%).

Complete the “Accounting Provisions” for each rate displayed. This will auto-calculate the “Allowance” amount (per rate).

“Indicate whether a directive was issued by SARS, approving the 85% rate.” Select if applicable.

• Complete the field “Specify the approved weighted average rate”.
• The “Specified” rate will be displayed.
• Complete the “Accounting Provisions” for the specified rate displayed. This will auto-calculate the “Allowance” amount (per rate).

Farming Operations

Income from Local Farming Operations (IT48)

This section will only display if you selected ‘Y’ to the question “Indicate the type of local amounts received / accrued to the Trust: Farming Income” on the tax form wizard of the return.

Please complete fields as per the financial statements of the Trust.

Farming Operations

The record retention periods contained in section 29 and 97 of the Tax Administration Act has been adjusted in line with the time-periods set out in paragraph 13 of the first schedule.

The Commissioner may, notwithstanding the provisions of sections 99 and 100 of the Tax Administration Act, raise an assessment for any year of assessment with respect to which a deduction in terms of subparagraph (1) is allowed. Where a deduction in terms of subparagraph (1)(a) or (b) may be claimed in respect of a year of assessment, the period prescribed under section 29(3) of the Tax Administration Act after which records, books of account or documents need not be retained shall be extended to six years or eleven years respectively for such year of assessment. Where a deduction in terms of subparagraph (1)(b) may be claimed in a year of assessment, the period prescribed under section 97(4) of the Tax Administration Act after which a record of assessment may be destroyed shall be extended to eleven years for such year of assessment”.

The “Income from Local Farming Operations (IT48)” will be updated to allow the taxpayer to select if a relevant paragraph in the First Schedule to the Income Tax Act applies.

Indicate if paragraph 13(1)(a), 13(1)(b), 13A,15,17 and 20 of the First Schedule to the Income Tax Act applies to the assessment by marking the applicable tick box(es) with an “X”.

• Par13(1)(a).
• Par13(1)(b).

Complete the applicable fields on the return for:

• Local farming operations.
• Special Depreciation Information.
• Information on Capital Improvements.

Note: This is applicable from 2022 tax year and onwards tax year.

Details of Farming Expenses (IT48)

This section of the return will only display if the amount for the ‘Less: Allowable Expenses’ field under ‘Local Farming Operations’ is greater than zero.

Complete the applicable fields for the farming expenses incurred during the year of assessment.

Capital Improvements incurred during the year of assessment (Paragraph 12(1) of the First Schedule)

This section of the return will only display for the 2016 year of assessment onwards and if the amount for the ‘Purchases/costs current year’ field (under the ‘Information on Capital Improvements’ section) is greater than zero.

Complete the applicable fields for the capital improvements incurred during the year of assessment.

• ‘Dipping tanks.’
• ‘Dams, irrigation schemes, boreholes, and pump plants.’
• ‘Fences.’
• ‘Erection of or additions or improvements to farm buildings (other than ‘buildings used for domestic purposes).’
• ‘Planting of trees, scrubs, or perennial plants for the production of grapes or other fruit, nuts, tea, coffee, hops, sugar, vegetable oils or fibres and the establishment of an area for such purposes.’
• ‘Building of roads and bridges used in farming operations.’
• ‘Carrying of electric power from the main transmission lines to the farm apparatus or under an agreement concluded with the Electricity Supply Commission as stipulated.’
• ‘Wages paid to employees employed in construction of capital works as set out above.’

Total purchases/Costs – Current year.

• ‘Total’ – this field will be calculated automatically on eFiling.

Income from Local Partnership Farming Operations (IT48V)

• This section will display if ‘Y’ was selected for the question: “Indicate the type of local income received / accrued to the Trust: Farming income” on page one of the return.
• This section will be repeated based on the value entered for the question “How many farming partnership operations did the Trust participate in?” on page one.

Farming Operations

Complete the applicable fields on the return for:

• Local farming operations.
• Special Depreciation Information.
• Information on Capital Improvements.
• Partnership Information for Share Distribution (Farming).

Details of Farming Expenses (IT48V)

This section will only display if the amount for the ‘Less: Allowable Expenses’ field under ‘Income from Local Partnership Farming Operations (IT48V)’ is greater than zero.

Complete the applicable fields for the farming expenses incurred during the year of assessment.

Capital Improvements incurred during the year of assessment (Paragraph 12(1) of the First Schedule)

This section of the return will only display for the 2016 year of assessment onwards and if the amount for the ‘Purchases/costs current year’ field (under the ‘Information on Capital Improvements’ section) is greater than zero.

Complete the applicable fields for the capital improvements incurred during the year of assessment.

• ‘Dipping tanks.’
• ‘Dams, irrigation schemes, boreholes, and pump plants.’
• ‘Fences.’
• ‘Erection of or additions or improvements to farm buildings (other than ‘buildings used for domestic purposes).’
• ‘Planting of trees, scrubs, or perennial plants for the production of grapes or other fruit, nuts, tea, coffee, hops, sugar, vegetable oils or fibres and the establishment of an area for such purposes.’
• ‘Building of roads and bridges used in farming operations.’
• ‘Carrying of electric power from the main transmission lines to the farm apparatus or under an agreement concluded with the electricity supply commission as stipulated.’
• ‘Wages paid to employees employed in construction of capital works as set out above.’

Total Purchases / Costs – Current Year.

• ‘Total’ – this field will be calculated automatically on eFiling.

Amounts Considered Non-Taxable

This section of the return would display if you selected ‘Y’ to the question “Did the Trust receive any amounts considered non-taxable?” on page one of the return.

Complete the applicable fields as per the financial statements.

• ‘Local Dividends’.
• ‘Exempt foreign dividends (excl. s10B(3) exemption)’.
• ‘Other Non-Taxable Income (excluding items listed above)’.
• ‘Please provide descriptions relating to other non-taxable income listed above’
• ‘Total non-taxable income’.
• ‘Less: Expenses attributable to non-taxable income’.
• ‘Amount available for distribution/loss’.

Non-Deductible Expenses (not disclosed elsewhere in this return)

This section will only display if you selected “No” to all the following income questions on the tax form wizard of the return:

• ‘Local Amounts received and/or accrued’.
• ‘Foreign Amounts received and/or accrued’.
• ‘Capital Gain/Loss’.
• ‘Amounts considered non-taxable containers’.

Complete the non-deductible expenses fields below:

• ‘Local Expenses’.
• ‘Foreign Expenses’

Donations

Donations allowable i.t.o. Section 18A to approved organisations

Section 18A is amended that additional information will be required as the Commissioner may prescribe by public notice.

The donation amount will only qualify as a deduction if the receipt issued to approved public benefit organisations in terms of section 18A of the Income Tax Act.

From the 2016 year of assessment if the Trust made donations to more than ten Public Benefit Organisations (PBO’s), then the details of the top ten PBO’s (i.e., to whom donations with the highest monetary value was made) must be completed on the return.

Complete the following fields:

Donations (excl. any other donation).

• ‘Total donations made from funds that did not vest in any Trust beneficiary (4011)’
• Complete the following fields for each organisation:
  • Details of the organisation to whom donations were made.
  • Details of the top 10 organisations (highest monetary value) to whom donations were made.
  • PBO number.
  • “Amount donated to organisation”
• ‘PBO number’ – this is the reference numbers on the receipt received from the organisation.
• ‘Amount donated to this organisation’

Collective Investment Scheme: Donations allowable in terms of S18A to approved organisations

This section would display if you selected ‘Y’ to the question “Is this Trust a Collective Investment Scheme?” on the tax form wizard of the return.

Complete the following fields:

• ‘Total donations made from funds that did not vest in any beneficiary (4011)’.
• ‘Average value of aggregate of all participatory interest held by investors in the portfolio.’

Recoupment of Venture Capital Company Shares Sold

To assist small and medium-sized businesses and junior mining exploration companies in terms of equity finance, government implemented a tax incentive for investors in such enterprises through a Venture Capital Company (VCC) regime.

• Section 12J came into effect on 1 July 2009.
• Investors can claim income tax deductions in respect of the expenditure incurred in exchange for the issue of VCC shares.
• On request from SARS, the investor must verify a claim for a deduction by providing a VCC Certificate that has been issued by an approved VCC, stating the amount of the investment and the year of assessment in which the investment was made.

If the Trust invested in 20 or more VCCs, then only the details of the 20 investments with the highest monetary value must be completed on the return.

Note: Investments in Venture Capital Company after 30 June 2021 in exchange for the issue of shares will no longer be allowed as a deduction.

Recoupment i.r.o. VCC Shares Sold: S12J

This section will display if ‘Y’ is selected for the question “Were any SARS approved Venture Capital Company shares sold for which tax deduction to the Trust was allowed” on the tax form wizard of the return.

Except in the case of VCC shares held by a taxpayer for a period longer than five years (effective January 2015), the deduction is recouped (recovered) if the taxpayer disposes of the VCC shares to the extent of the initial VCC investment (under the general recoupment rules of section 8(4) of the Act)).

Complete the following:

• ‘Amount recouped i.r.o. Venture Capital Companies shares sold for which a tax deduction was allowed to the Trust (4245)’.

Foreign Tax Credits – South African Sourced Income (Already Included Elsewhere in this Return) – S6QUIN

This section is applicable to the 2016 and prior year of assessment and will display if you selected ‘Y’ to the question “Will the Trust be claiming any foreign tax credits in terms of s6quin?” on page one of the return.

S6quin provides for a tax credit to be claimed in respect of tax withheld or imposed by a foreign country.

To qualify for this rebate, the Trust must submit the return of Foreign Tax Withheld to SARS and retain the proof.

• The return of Foreign Tax Withheld (FTW01) and the relevant material in respect of foreign tax withheld must be sent to SARS within 60 days from the date the tax was withheld or paid. The return must be emailed to [email protected].
• The Return of Foreign Tax Withheld (FTW01) can be downloaded from the SARS website.
• The amount of income must be from a source within the Republic and received by or accrued to a resident for services rendered.
• The tax credit may be in respect of an amount of tax levied by any sphere of the government of any country –
  • Other than the Republic.
  • With which the Republic has concluded a Double Tax Agreement (DTA).
  • Where a DTA is not concluded between the Republic and the other country a tax credit may also be in respect of the amount of tax imposed in terms of the laws of that country.

Complete the following on the return:

• ‘Taxable income from services rendered in South Africa taxed outside the RSA’
  • Note: This amount must have been declared as taxable income elsewhere in this return as this section is only used by SARS to calculate the allowable foreign tax credit applicable to this amount.
• ‘Was the declaration of Foreign Tax Withheld (FTW01) submitted to the Commissioner within 60 days?’ – Select ‘Y’ or ‘N.’
• ‘Please confirm that the amount was not claimed as a deduction in terms of s 6quat(1C)?’ – Select ‘Y’ or ‘N.’
• ‘Foreign tax credits (7456)’
  • The amount must be converted to the rand value on last day of the year of assessment by applying the average exchange rate for the year of assessment.

For more information on s6quin refer to SARS website www.sars.gov.za.

Foreign Tax Credits – Refunded/Discharged

This section will display from the 2017 year of assessment onwards.

The allowable foreign tax credit was changed from a tax credit to a rebate to comply with the Income Tax Act.

A s6quat deduction reduces the taxable income of a South African resident. This in turn reduces the normal tax liability of the taxpayer. Where a South African resident claimed a deduction for foreign tax paid/payable in terms of section 6quat and in a subsequent year of assessment the foreign tax was refunded or the taxpayer was discharged from the applicable tax liability, then the amount that was discharged (limited to the amount that was originally claimed) will be deemed to be an amount of normal tax payable by that taxpayer in the subsequent year of assessment.

Complete the fields on the return:

• ‘Specify the portion of the amount refunded/discharged that was previously allowed as a rebate’. 
• ‘Specify the portion of the amount refunded/discharged that was previously allowed in terms of s6quat(1C)’ – source code 4249.

Deduction i.t.o. s6quat(1C)

This section will display if yes was selected for the question “Will the Trust be claiming a deduction on SA sourced trading income i.t.o. s6quat(1C)?” on the wizard of the form.

Complete the fields on the return:

• Deduction i.t.o. s6quat(1C) for foreign taxes paid or proved to be payable to a foreign government of any country on any SA sourced trade income that did not vest in any Trust beneficiary.
  • Source code 4053.
• Did the Trust have a right of recovery other than a right of recovery i.t.o. a mutual agreement procedure, or any entitlement to carry back losses arising during any previous year of assessment? – Select ‘Y’ or ‘N.’
• Was this foreign tax amount refunded to the Trust during this year of assessment? – Select ‘Y’ or ‘N.’
• Taxable income from SA sourced trade income (including local remuneration) taxed outside SA (before considering any allowable deductions i.t.o. s18A and s6quat(1C), as these deductions will be calculated by SARS).

PAYE Credits Available (excluding PAYE on Lump Sum Benefits and Provisional Tax)

This section would display if you selected ‘Y’ to the question “Will the Trust be claiming any PAYE credits reflected on an IRP5 tax certificate?” on the form wizard of the return.

The Trust must complete this section for every employee’s tax certificate (IRP5/IT3(a)) issued to the Trust for services rendered or for annuities received by the Trust.

The IRP5/IT3(a) certificate data submitted to SARS via the EMP501 Employer Reconciliation process will be used to pre-populate the information on the income tax return.

• The information pre-populated on the return will be locked and cannot be edited.
• Check the information to ensure that it is correct.
• SARS cannot alter or delete any of the pre-populated IRP5/IT3(a) data provided by third parties. If the information is incorrect, this must be rectified by the third party via the Employer Reconciliation process.

Completed the following fields on the return:

• ‘IRP5 certificate number’.
• ‘PAYE Credit.’

Partnership

This section would display if you selected ‘Y’ to the question “Is the Trust a partner in a partnership?” on the tax form wizard of the return, and it will be repeated according to the number of partnerships indicated.

Complete the following fields for each Partnership:

• ‘Partnership Name’.
• ‘Specify the Trust’s profit/loss sharing % during the year of assessment’.
• ‘Did the profit/loss sharing percentage change during the year?’ – Select ‘Y’ or ‘N.’
• ‘Indicate if the Trust derived a profit/loss from this partnership during the year of assessment’– Select ‘Y’ or ‘N’.
• ‘Indicate if this information is in respect of a local or a foreign partnership’.

Details of Consolidated Transactions for Trusts

This section will display as a separate schedule on page one of the return:

• The value in the field “Specify the number of distinct persons or beneficiaries to whom any of the following transactions were applicable during the year of assessment” is greater than 50, and
• ‘Y’ was selected for any of the listed transactions.

Complete the applicable fields on the return.

‘Details of Taxable amounts distributed to/vested in beneficiaries or taxable i.t.o. s7 or paras. 68 – 72 of the Eighth Schedule’:

Note: Any capital or income (taxable or non-taxable) distributed as an annuity must be declared in this section under source code 3611.

• ‘Amount subject to tax.’
• ‘Source Code’ – the source code entered must be within the following range:
  • All profit trade source codes (ending with an even digit).
  • 3006 – only valid for years of assessment from 1999 – 2006.
  • 3025 – only valid for years of assessment from 2007 onwards.
  • Local remuneration and annuities: 3601-3606, 3610, 3611, 3616, 3617, 3667.
  • Investment, capital gains, rental, royalties, and other income: 4201, 4210, 4212, 4214, 4216, 4218, 4220, 4238 (only from 2015 years of assessment onwards), 4250, 4252.
• ‘Foreign Tax Credits’
  • Should the Trust (taxpayer) wish to claim any foreign tax credit, this should be claimed together with other tax credits. In future years a container for Foreign Tax Credits from other Trusts will be provided.
• Total persons taxable – Insert the total number of persons where a distribution/vesting in beneficiaries occurred or a person was taxable i.t.o. s7 or paragraphs 68 – 72 of the Eighth Schedule:
  • On eFiling, use the plus (+) button to add additional rows or the minus (-) button to remove rows.

‘Details of Non-Taxable Income Distributed’

• ‘Local Dividends’ – this field is mandatory if an amount greater than zero was declared for “Local Dividends” in the “Amounts considered non-taxable” section.
• Exempt foreign dividends (excl. s10B(3) exemptions) – this field is mandatory if an amount greater than zero was declared for “Exempt foreign dividends (excl. s10B(3) exemption)” in the “Amounts considered non-taxable” section.
• ‘Other Non-Taxable income’– this field is mandatory if an amount greater than zero was declared for “Other Non-Taxable income” in the “Amounts considered non-taxable” section.
• Indicate the ‘number of persons to whom non-taxable income is distributed’ for:
  • ‘Local Dividends.’
  • ‘Exempt foreign dividends (excl. s10B(3) exemption)’.
  • ‘Other Non-Taxable income.’

‘Details of Capital Distribution(s)’

• ‘How many persons received capital distribution(s) from this Trust.’
• Add ‘total value of capital distributed by the Trust during the year of assessment.’

‘Details of loan(s) granted to the Trust’

• ‘How many outstanding loans is the Trust liable for?’
• Add ‘total value of outstanding loans the Trust is liable for.’
• ‘Was any waiver or compromise exercised in respect of these loans?’ – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.
• Was security provided for all of these loans? – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.

‘Details of loan(s) granted by the Trust’

• ‘How many outstanding loans have been granted by the Trust?’
• Add ‘total value of outstanding loans granted by the Trust.’
• ‘Was any waiver or compromise exercised in respect of these loans?’ – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.
• ‘Was security provided for all of these loans?’ – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.

‘Details of Donation(s) made by Trust’

• ‘How many persons received donation(s) from this Trust during the year of assessment?’
• Add ‘total value donated by the Trust during the year of assessment.’

‘Details of Contribution(s) made by Trust’

• ‘How many persons received contribution(s) from this Trust during the year of assessment?’
• Add ‘total value contributed by the Trust during the year of assessment’:

‘Details of Donation(s) made to the Trust’:

• ‘How many persons made donation(s) to this Trust during the year of assessment?’
• Add ‘total value donated to the Trust during the year of assessment.’

‘Details of Contribution(s) made to the Trust’:

• ‘How many persons made contribution(s) to this Trust during the year of assessment?’
• Add ‘total value contributed to the Trust during the year of assessment.’

‘Details of Distribution(s) made to the Trust.’

• ‘How many Trusts/foundations made distribution(s) to this Trust during the year of assessment?’
• Add ‘total value distributed to the Trust during the year of assessment.’

‘Details of Contribution(s) returned by the Trust.

• ‘How many persons received a return of contribution(s) made to this Trust during the year of assessment?’
• Add ‘total value of contributions returned by the Trust during the year of assessment.’

‘Details of Expenses incurred i.r.o. use of Trust assets’

• ‘How many persons enjoyed the right of use of assets retained in this Trust?’
• Add ‘total expenses incurred by this Trust in respect of right of use of Trust assets during the year of assessment.’

Details of person(s)/beneficiary/ies to whom Income, Capital or Assets were distributed or vested, with the highest monetary value

This section will display on the tax form wizard of the return:

• The value in the field “Specify the number of distinct persons or beneficiaries to whom any of the following transactions were applicable during the year of assessment” is greater than 50, and
• ‘Y’ was selected for any of the listed transactions.

Information of Person/Beneficiary

Select ‘Y’ or ‘N’ for the following options to specify the nature of the person / beneficiary:

• ‘A connected person in relation to this Trust?’
• ‘A beneficiary of this Trust?’
• ‘A founder of this Trust?’
• ‘A natural person?’
• ‘A donor of this Trust?’
• ‘A non-resident?’

Details – Individual

This section will display if the type of person/beneficiary added to the return is an “Individual”. Complete the following:

• ‘Taxpayer Ref No’ – If the person/beneficiary does not have a tax reference number, complete zero’s (‘0000000000’) in this field.
• ‘Surname’.
• ‘First name’.
• ‘Other name’.
• ‘Initials’.
• ‘Date of birth.
• ‘Identity number’.
• ‘Passport number’.
• ‘Passport Issue Date’.
• ‘Passport Country – This field is mandatory if a passport number has been entered.

Details – Company/Trust

This section will display if the type of person/beneficiary added to the return is a “Company/Trust”. Complete the following:

• ‘Taxpayer Ref No’ – If the person/beneficiary does not have a tax reference number, complete zero’s (‘0000000000’) in this field.
• ‘Company/Trust Reg No’.
• ‘Registered Name’.

Details of transactions applicable to this Person/Beneficiary

Select the applicable transactions below to indicate if the person/beneficiary during the year of assessment:

• ‘Was taxable on amounts distributed to/vested in beneficiaries or taxable i.t.o s7 or paras.68-72 of the Eight Schedule’.
• ‘Received/accrued non-taxable amounts from this Trust’.
• ‘Received/accrued a capital or asset distribution from this Trust’.
• ‘Held loan(s) granted to this Trust’.
• ‘Held loan(s) from this Trust’.
• ‘Made donation(s) to this Trust’.
• ‘Made contribution(s) to this Trust’.
• ‘Received donation(s) from this Trust’.
• ‘Received contribution(s) from this Trust’.
• ‘Made distribution(s)to this Trust (only applicable if the related party is a Trust or foundation)’.
• ‘Received refund(s) of contribution(s) made to this Trust’.
• ‘Enjoy the right of use of asset(s) retained in this Trust’.

Complete the information for each of the transactions selected above.

‘Details of taxable amounts distributed to/vested in beneficiaries or taxable i.t.o. s7 or paras. 68 – 72 of the Eighth Schedule’

Note: Any capital or income (taxable or non-taxable) distributed as annuity deemed annuity must be declared in this section under source code 3611.

• ‘Amount subject to tax.’
• ‘Source Code’ – the source code entered must be within the following range:
  • All profit trade source codes (ending with an even digit).
  • 3006 – only valid for years of assessment from 1999 – 2006.
  • 3025 – only valid for years of assessment from 2007 onwards.
  • Local remuneration and annuities: 3601-3606, 3610, 3611, 3616, 3617, 3667.
  • Investment, capital gains, rental, royalties, and other income: 4201, 4210, 4212, 4214, 4216, 4218, 4220, 4238 (only from 2015 years of assessment onwards), 4250, 4252.
• ‘Foreign Tax Credits.’
• Total persons taxable – Insert the total number of persons where a distribution/vesting in beneficiaries occurred or a person was taxable i.t.o. s7 or paragraphs 68 – 72 of the Eighth Schedule.
  • On eFiling, use the plus “+” button to add additional rows or the minus “-” button to remove rows.

‘Details of Non-Taxable Income Distributed’

• ‘Local Dividends.’
• ‘Exempt foreign dividends (excl. s10B (3) exemptions)’.
• ‘Other Non-Taxable income.’

‘Details of Capital Distribution(s)’

• ‘Total value of capital distributed to this person during the year of assessment.’

‘Details of Expenses incurred i.r.o. Use of Trust Assets’

• ‘Total expenses incurred by this Trust in respect of right of use of the Trust assets by this person during the year of assessment.’

‘Details of loan(s) granted by the Trust’

• ‘Interest rate.’
• ‘Loan amount.’
• ‘Inception date (CCYYMMDD)’:
  • The date must not be greater than the maturity date.
• ‘Maturity date (CCYYMMDD).’
• ‘Repayment periods’:
• ‘Was security provided?’ – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.
• ‘Any wavier or compromise exercised?’ – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.

‘Details of loan(s) granted to the Trust’

• ‘Interest rate.’
• ‘Loan amount.’
• ‘Inception date (CCYYMMDD)’:
  • The date must not be greater than the maturity date.
• ‘Maturity date (CCYYMMDD).’
• ‘Repayment periods.’
• ‘Was security provided?’ – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.
• ‘Any wavier or compromise exercised?’ – Select ‘Y’ or ‘N.’
  • This field is not applicable from the 2017 year of assessment.
• ‘Is this loan subject to donations tax i.t.o. s7C’
  • Applicable from the 2017 year of assessment.
  • Section 7C is intended to focus on interest free loans or loans bearing interest below market rates that are made directly or indirectly by a natural person, or a company; or any person that is a connected person in relation to the person or company. The difference between the amount incurred by the Trust as interest and the amount that would have been incurred by that Trust at the official interest rate will be treated as having been donated by the connected person to the Trust on the last day of a year of assessment of that person and will therefore be subject to donations tax in terms of s54 of the Income Tax Act. If the deemed interest is below R100 000 for the year of assessment it will be exempt from donations tax.

‘Details of Donation(s) made to the Trust’

• Add ‘total value donated by this person during the year of assessment.’

‘Details of Contribution(s) made to the Trust’

• Add ‘total value contributed by this person during the year of assessment.’

‘Details of Donation(s) received from the Trust’

• Add ‘total value donated by the Trust to this person during the year of assessment.’

‘Details of Contribution(s) received from the Trust’

• Add ‘total value contributed by the Trust to this person during the year of assessment.’

‘Details of Distribution(s) made to the Trust’

• Add ‘total value distributed by this person during the year of assessment.’

‘Details of Contribution(s) refunded by the Trust’

• Add ‘total value of contributions refunded by the Trust to this person during the year of assessment.’

Beneficial Ownership and Transparency (BOT)

An additional container for “Beneficial Ownership” is included on the Trust Return (ITR12T), SARS’ aim is to record all beneficial owners of Trusts who would gain financially from the proceeds of the Trust to comply with the Financial Action Task (FATF) requirements.

In this regard, certain information must be submitted to SARS via e-Filing i.e., a copy of the Trust instrument, letters of authority, etc. 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), which will elaborate on Beneficial Ownership in relation to the Trust.

With regards to the capture of 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.

• A maximum of 20 beneficiaries can be captured on the “Beneficial Ownership Declaration” from 2023 onwards.
• In the event there are more than 20 beneficial owners, the taxpayer must upload a supporting document that reflects the additional beneficial owner(s).

Trust Types

The Trust types can be selected or prepopulated in the return:

• Inter-vivos Trust
• Testamentary Trust
• Foreign Trust (Non-Resident Trust)
• Special Trust Type A – inter-vivos
• Special Trust Type A – Testamentary
• Special Trust Type B – Testamentary

Beneficial Owner Detail

Specify the number of distinct beneficiary owners to whom any of the following transactions were applicable during the year of assessment.

• State the number of beneficial owners.

Entity Type

Complete Entity Type (within each of the sections the following fields will be available for capture or selection in terms of Entity Type (Dropdown with the following list):

• Individual.
• Company (CIPC registered).
• Trust.
• Other.

Particulars – Individual

Complete the beneficial owner category selected:

• Founder (Mandatory for completion).
• Trustees (Mandatory for completion).
• Beneficiaries (Mandatory for completion).
• Donor (Optional).
• Protector (Optional).

Capture and complete the following fields:

• Initials.
• Surname.
• Date of Birth (CCYY/MM/DD).
• ID Type.
  • South African ID
  • Foreign Passport
• ID/Passport number – The ID number will be subject to the standard ID validations.
• If Foreign Passport is selected the following fields are mandatory:
  • Passport Country.
• Are you registered for tax in South Africa? (yes/no selection).
• Tax Reference Number (mandatory if yes was selected on the question are you registered for tax in South Africa)
• Passport Number.
• Passport Country.
• Email Address.
• Cell phone Number.
• Physical Address:
  • Unit Number
  • Complex (If applicable)
  • Street Number.
  • Street/Farm Name.
  • Suburb/District.
  • City/Town.
  • Country Code (e.g., South Africa – ZA).
  • Tax Jurisdiction.
  • Postal Code.

Particulars – Company (CIPC Registered)/Trust/Other

Capture and complete the following fields:

• Registered Name.
• Trading Name.
• Company/CC/Trust Registration Number:
  • Its mandatory for Company field to be validated against the CIPC registration number.
  • Its mandatory for all Trust Types except for Foreign Trust (Non-Residential).
  • Optional for Other.
• Tax Reference Number (mandatory if yes was selected on the question are you registered for tax in South Africa)
• Physical Address:
  • Unit Number.
  • Complex (If applicable.
  • Street Number.
  • Street/Farm Name.
  • Suburb/District.
  • City/Town.
  • Country Code (e.g., South Africa – ZA).
  • Tax Jurisdiction.
  • Postal Code.
• The taxpayer can click on the “Add” or “Save” button for an additional container that will be made available where the taxpayer captures the details of the “warm body” associated with the entity.

Trust/Legal Entity Representative

This container will only become available for any selection other than “Individual and it will be associated with the entity type container.

• The taxpayer will be able to capture at least 1 individual associated to the entity, taxpayer may add additional individuals:
  • Initials.
  • Surname.
  • Date of Birth (CCYY/MM/DD).
  • ID Type:
    • South African ID.
    • Foreign Passport.
• Are you registered for tax in South Africa? (yes/no selection).
• Tax Reference Number (mandatory if yes was selected on the question are you registered for tax in South Africa).
• ID/Passport Number – The ID number will be subject to the standard ID validations.
• If Foreign Passport is selected the following fields are mandatory:
  • Passport Country
• Passport Issue Date.
• Place of Birth.
• Cell phone number.
• Email Address.
• Physical Address:
  • Unit Number.
  • Complex (If applicable.
  • Street Number.
  • Street/Farm Name.
  • Suburb/District.
  • City/Town.
  • Country Code (e.g., South Africa – ZA).
  • Tax Jurisdiction.
  • Postal Code.
• The container will allow the taxpayer to “Add” multiple line items.

Declaration

The “Declaration” section of the Income Tax Return for a Trust (ITR12T) will be presented to the taxpayer upon the submission of the return as pop-up message. This applies to original and revised declarations.

The representative taxpayer is obliged to ensure that complete and accurate disclosure is made of all relevant information required on the Income Tax Return for Trusts. Misrepresentation, neglect, or omission to furnish such information or furnishing false information may result in penalties and/or additional tax assessments (together with interest) and/or prosecution.

After completion of the return, read the declaration on the front page of the return.

• I declare that: ·I am the duly appointed Representative of the Trust.
• The information furnished in this return is to the best of my knowledge both true and correct.
• I have disclosed the gross amounts of all income received and / or accrued to this Trust during the period covered by this return.
• I have the necessary financial records and supporting schedules to support all declarations on this return which I will retain for audit purposes.

Definitions, acronyms and abbreviations

The definitions, acronyms and abbreviations can be accessed here – Glossary webpage.

Legal disclaimer: In the event of conflict or inconsistency between this webpage and the PDF version of the guide, the latter shall prevail.