9 April 2026 – The South African Revenue Service (SARS) is reminding all trusts registered in South Africa that, in terms of tax legislation, they are required to submit Income Tax Returns for every year of assessment. This obligation applies even where a trust had no economic activity during the relevant year.
Where a trust is no longer being used for its intended purpose, trustees are encouraged to formally terminate the trust through the Office of the Master of the High Court (Master). Once the Master has issued a written confirmation of termination, trustees should request SARS to deregister the trust for income tax purposes. This process assists in preventing the unnecessary imposition of administrative penalties arising from ongoing non-compliance.
Although the Trust Property Control Act does not expressly prescribe a deregistration process, the Chief Master issued a directive in 2017 to provide clarity on the procedure to be followed. Importantly, trustees must first establish and regularise the trust’s tax compliance status with SARS before approaching the Master for termination.
Trustees act as representative taxpayers of a trust in terms of the Income Tax Act and are required to ensure that all outstanding tax returns, payments, and related tax obligations are fully resolved prior to requesting termination at the Master and deregistration at SARS. In some instances, SARS may owe a trust a tax refund. Once a trust has been terminated by the Master, it legally ceases to exist, as does the Office of Trusteeship. In such circumstances, SARS is unable to lawfully process or pay any refunds due to the trust.
Trustees are therefore urged to follow the correct sequence: first confirm and regularise the trust’s tax affairs with SARS, and only thereafter proceed with termination at the Master. This approach safeguards compliance and protects trustees from potential personal liability. This also ensures that any refunds due to the trust can be processed timeously.
For further information, please contact [email protected].
