Important SARS e-filing deadline approaching for one group of South Africans

South African trusts have until 22 January 2027 to submit their income tax returns to the South African Revenue Service (SARS).

The 2026 trust filing season opened on 19 September 2026 and applies to both provisional and non-provisional trusts.

Trustees and registered representatives must submit the Income Tax Return for Trusts (ITR12T) during this period.

SARS said all registered resident trusts and qualifying non-resident trusts required to file under its annual public notice must submit the return.

This filing season also coincides with the introduction of SARS’s administrative non-compliance penalty framework for trust filing obligations.

The revenue service urged trustees to ensure their trusts are registered, their tax affairs are up to date, and their returns are submitted accurately and on time.

Trust registration for income tax is a prerequisite for filing. SARS requires trusts to register for income tax within 21 days of registering with the Master of the High Court.

However, some remain unregistered, and SARS is working to identify these trusts and bring those that are required to register into the tax system.

Trustees can register through the SARS Online Query System on the SARS website or visit a SARS branch after booking an appointment through the online system.

The taxman also stressed that trustees need to ensure their registered details are accurate and up to date.

Any changes to a trust’s registered information must be reported to SARS within 21 business days. This includes changes to trustees, the representative taxpayer, contact details and physical or postal addresses.

Failure to notify SARS of changes may constitute a criminal offence under section 234 of the Tax Administration Act.

SARS e-filing changes for trustees

SARS has introduced several changes to the ITR12T to make it easier for trustees to comply with their tax obligations.

Some income, vested amounts and expense information is now pre-populated using IT3(t) third-party data. Beneficiary schedules are also populated using this information to reduce duplicate capturing and improve accuracy.

The beneficial ownership section has also been updated to accommodate cases where the founder is a legal entity that no longer exists, as well as cases involving deceased individuals.

Tax practitioner contact details are now mandatory on the return to help SARS communicate more effectively.

Trustees can submit their ITR12T electronically through SARS eFiling, provided the trust is registered, and the taxpayer is registered for eFiling.

A simplified return is available for passive trusts. For trusts with 10 or fewer beneficiaries, the return can also be captured at a SARS branch by appointment, provided the required fields have been completed beforehand.

SARS has also identified nil returns and assessed-loss positions as areas of focus for the 2026 trust filing season.

The tax authority is prioritising the identification and resolution of inconsistencies in these submissions to improve compliance and reporting accuracy.

SARS warned that taxpayers should not assume that a trust holding passive assets does not need to disclose financial information simply because it is not actively generating income.

Even if a trust is not actively trading, its assets, liabilities, income and expenditure must still be properly declared.

For example, a trust holding a holiday home or other immovable property must disclose the asset and relevant expenses, including the costs of maintaining the property.

Nil returns and assessed-loss positions must be supported by the trust’s underlying financial records and actual circumstances.

Trustees should ensure that their returns accurately reflect the trust’s financial position rather than submitting nil returns simply because the trust has limited activity.

Trustees are still responsible for compliance

SARS has stressed that trustees remain legally responsible for a trust’s tax affairs, even when a tax practitioner assists with the administration.

The Trust Property Control Act requires trustees to act with care, diligence and skill when managing trust affairs. The joint action rule also generally requires co-trustees to act collectively in administering a trust.

Although certain duties can be delegated, trustees retain ultimate responsibility for ensuring that the trust meets its tax obligations.

Under certain circumstances set out in the Tax Administration Act, trustees may also be held personally liable for a trust’s tax debts.

Before completing the ITR12T, SARS said trustees should have the relevant supporting documents available.

These include the trust deed or will, income and expenditure records, proof of tax credits, annual financial statements, beneficial ownership documents, minutes recording trustee appointments and letters of authority.

Trusts that have ceased operating and have been formally terminated should also be deregistered with SARS after their tax affairs have been brought up to date.

Deregistration with the Master of the High Court does not automatically deregister a trust with SARS. A separate request, together with supporting documents, must be submitted to SARS through its prescribed channels.

Trustees also have a separate reporting obligation relating to the IT3(t) third-party data return.

This return records amounts vested in beneficiaries during the relevant year of assessment and allows SARS to use the information when populating beneficiaries’ individual tax returns.

The deadline for submitting IT3(t) returns for the 2026 year of assessment was 30 September 2026.

Trustees and representative taxpayers should check that this separate requirement has been met when preparing the trust’s annual ITR12T return for submission by 22 January 2027.