SARS turns up the heat on trusts as filing season opens

The South African Revenue Service (SARS) has issued warnings to trustees as the 2026 Trust filing season kicks off. The filing period for trusts started over the weekend and will continue until January 22, 2027. SARS requires all eligible trusts to submit their Income Tax Return for Trusts (ITR12T), and trustees of passive trusts must declare assets, liabilities, income, and related expenses.

SARS is focusing on nil returns and assessed-loss positions to enforce compliance. They have made it easy for trusts to register for income tax by offering a digital solution through the SARS Online Query System on their website. Trustees are still responsible for their trusts' tax affairs, even if they enlist a tax practitioner for assistance. Any changes to a trust's registered details, such as trustees, contact details, and addresses, must be reported to SARS within 21 business days.

The Trust Property Control Act No. 57 of 1988 (TPCA) places the responsibility of obtaining, maintaining, and updating accurate Trust information solely on the Trustees. SARS emphasized that trustees may delegate functions to a tax practitioner, but they remain ultimately responsible for the trust's tax compliance.

This year, the ITR12T has been improved with pre-populated income, vested amounts, and specific expense data from IT3(t) sources. Beneficiary schedules will also be auto-filled using information from third parties. Additionally, the return includes enhanced beneficial ownership questions, and tax practitioner contact details are now mandatory. Trustees have the option to submit the ITR12T either through SARS eFiling or at a SARS branch by appointment. A simplified return is available for passive trusts on eFiling.