“Trustees remain accountable for all tax matters of a trust, regardless of the economic activity of the trust.” (SARS)

Filing season for Trusts opened on 19 September 2026 and the closing date for Trusts to file is 22 January 2027 for both provisional and non-provisional trust taxpayers. Trustees and registered representatives should file the Income Tax Return for Trusts (ITR12T) within this period.

All registered resident Trusts and qualifying non-resident Trusts are required to submit returns in accordance with SARS’s filing requirements. For resident trusts, this obligation applies regardless of transactions or income, or whether they are active or passive, and even if they are considered “dormant”. Non-resident trusts must submit returns where they meet the applicable South African tax filing criteria.

Key changes and enhancements for 2026

The new penalty framework, which came into effect on 4 May 2026, applies to outstanding trust income tax returns for tax periods from 2024 onwards.

The ITR12T has also been enhanced to make it easier to comply with trust obligations and avoid administrative penalties for late or non-submission. These enhancements include:

• Income, vested amounts and certain expense information has been pre-populated with IT3(t) data to reduce duplication and improve accuracy.
• Beneficiary schedules on the ITR12T are also pre-populated using IT3(t) third-party data.
• Beneficial ownership founder questions have been enhanced to cater for cases where the founder is a legal entity that no longer exists, in addition to deceased natural persons.
• Tax practitioner contact details are now a mandatory field, facilitating effective communication between SARS and practitioners.

Nil returns and assessed-loss positions under the microscope

According to a 7 September press release, this filing season, “SARS will prioritise identifying, analysing, and resolving disparities detected in the submission of nil returns and assessed-loss positions.” SARS is especially keen to correct the misconception among trust taxpayers that passive trusts not actively used in the production of income may file nil returns: “The existence of passive assets does not relieve a trust from the obligation to disclose its assets, liabilities, and all relevant financial information.”

Taxpayers are reminded that all assets, including “dormant” or passive assets, must be disclosed. All income and expenditure relating to such assets (e.g. a holiday home or immovable property and the upkeep of such property) must be accurately declared. “Nil returns or assessed-loss positions must be fully supported by the trust’s records and underlying circumstances,” says SARS.

The buck stops with the trustees

SARS emphasises that “the responsibility for obtaining, maintaining, and updating accurate trust information rests exclusively with the trustees.” The Trust Property Control Act No. 57 of 1988 (TPCA) requires trustees to act with care, diligence, and skill in managing trust affairs. The “joint action rule” stipulates that co-trustees must act collectively in the administration of a trust.

Although trustees may appoint a tax practitioner to help administer the trust and fulfil its obligations, trustees remain legally liable and responsible for the trust’s tax compliance. This is not an idle threat: in some cases, trustees can be held personally liable for a trust’s tax obligations.

What you need to file an ITR12T trust tax return

Trustees should have these documents available when completing the ITR12T or when requested by SARS:

1	Trust instrument Latest trust deed or will
	Certain transactions and financial flows Income sources and distribution of income; proof of any tax credits	2
3	Financial information Annual financial statements / Annual administration accounts
	Parties connected to a trust Beneficial-ownership document, including detail per entity listed	4
5	Other documents Letters of Authority and minutes/resolutions of trustee meetings
	Foreign trust documents (if applicable) Controlled Foreign Company (IT10)	6
7	Mining documents (if applicable) Mining Schedule A and B

Trustees must remember to report any changes to the registered details of a trust to SARS within 21 business days of the change. This includes changes to trustees, the representative taxpayer, contact details, physical or postal addresses, and any other registered particulars. “Failure to notify SARS of changes may constitute a criminal offence under section 234 of the Tax Administration Act.”

Have you missed this deadline?

The IT3(t) third-party data return was due for submission on 30 September 2026 for the 2026 year of assessment. This IT3(t) return must be submitted by representative taxpayers of trusts, containing “details of amounts vested in beneficiaries for a specific year of assessment. The IT3(t) return is used to populate beneficiaries’ tax returns with the amounts vested to those beneficiaries by the trust.”

If your trust missed this deadline, contact us without delay so we can assist you by taking immediate corrective action and avoiding compounding non-compliance penalties.

Deregistration of trusts

When a trust has effectively ceased to operate and has been terminated in accordance with the trust instrument and applicable law, trustees should take the necessary steps to deregister the trust with both the Master of the High Court and SARS. This is because a deregistration with the Master does not automatically mean deregistration with SARS – a trust must deregister with SARS by submitting a deregistration request, together with the required supporting documents.

We can help

Trust tax season can be complex, with significant penalties for non-compliance. Our team is experienced in keeping trusts compliant, reducing costs and preventing hassles with SARS. If you need assistance meeting the trust tax deadline on 22 January 2027, simply reach out to us. It’s the easiest way to survive this trust tax season, and those ahead.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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