7 April 2026 – Following the stakeholder letter issued on 9 February 2026, the South African Revenue Service (SARS) wishes to update stakeholders on the imposition of non-compliance administrative penalties (admin penalties) for trusts. Feedback received during the public consultation process indicated that, owing to the complexity of trust tax compliance obligations and the related administration, trustees required additional time to regularise their tax affairs. The Commissioner for SARS approved this request, and an additional two months were approved to enable trustees to regularise these matters.
The imposition of the first admin penalties for tax non-compliance by trusts has been deferred to 4 May 2026, being the first business day of May. Accordingly, no admin penalties will be imposed prior to this date.
This deferral provides additional time for trustees and their representatives to regularise the required tax affairs, including to submit all outstanding tax returns and to update any other details where applicable.
Trust Deregistration Process
If a trust was deregistered with its regulatory authority or no longer meets the requirements to remain registered (non-resident trusts only), a formal deregistration process with SARS must be initiated. These trusts must finalise all outstanding tax obligations before requesting deregistration from income tax.
The deregistration process includes:
- Submitting all outstanding tax returns;
- Settling any outstanding tax liabilities; and thereafter
- Providing supporting documentation confirming the termination of the trust.
How can a trust taxpayer request income tax deregistration?
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- At a branch: make an appointment through the online booking system on the SARS website to visit a SARS branch.
- Via email: [email protected].
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Conclusion
SARS encourages stakeholders to resolve all outstanding trust tax compliance matters and to submit deregistration requests on time and in accordance with the prescribed requirements.
Failure to submit tax returns timeously and to deregister trusts for income tax may result in outstanding tax compliance obligations and, once the deferral period has lapsed, the imposition of admin penalties in cases of continued non-compliance.
If you need assistance with submitting returns/requests or have queries about your trust’s tax compliance status, please contact SARS through our official channels, visit our website, or seek advice from your tax representative or tax practitioner.
