9 February 2026 – In an effort to increase the compliance levels of trusts, SARS has issued final demands to trusts who did not submit an annual tax return for the 2024 and 2025 years of assessment. In terms of section 210(2) of the Tax Administration Act, SARS will shortly issue the related public notice for the imposition of administrative non-compliance penalties for trusts. It is important that those in receipt of such final demands as referred to above, take steps to correct the non-filing of the annual income tax returns within the period before the administrative penalties will be raised. SARS notes that, subsequent to the issuance of the final demand, several trusts have already taken steps towards improving their tax compliance. SARS supports and appreciates these efforts.
It is reiterated that all trusts, whether economically active or passive, are required to submit annual income tax returns in accordance with the requirements set out in the public notice. This obligation is an operation of law and is applicable to every registered resident trust (without exception) and certain qualifying non-resident trusts.
SARS emphasises that the responsibility for obtaining, maintaining, and updating accurate trust information rests exclusively with the trustees. This includes the initiation of de-registration processes for trusts that meet the applicable criteria. The trustees must undertake these actions for compliance with statutory requirements and adherence to proper governance practices. This will assist SARS to ensure that the trust tax register is up to date.
Trustees bear sole responsibility for ensuring that all trust information reflected on the SARS Registration, Amendments and Verification (RAV) system is up to date and properly maintained.
