Attention, trustees! The 2024 Trust Tax Season kicks off on 16 September and runs until 20 January 2025. During this period, all trusts, including dormant ones, must submit income tax returns in line with SARS requirements, accompanied by comprehensive supporting documents.

Given the delayed start to the filing season and the numerous recent changes, it’s crucial to seek professional guidance to ensure full compliance and avoid penalties.

Trusts as Taxpayers

SARS emphasizes that a trust is considered a “person” for tax purposes and must be registered for income tax, even if it’s dormant. Trustees are responsible for ensuring that income tax returns are filed correctly, and they cannot avoid consequences by shifting blame. Trust tax returns can be filed from 16 September 2024 until 20 January 2025, a later start than usual.

Compliance Challenges

Several new compliance requirements are in place for this tax season, making it more complex than previous years.

• Updated ITR12T Form: SARS has added more questions and requires more supporting documents. The type of trust determines the exact documentation needed, which may include income certificates, trust deeds, financial statements, and more.
• Beneficial Ownership Disclosure: Trustees must disclose detailed information about all beneficial owners, including identity documents, which will be cross-checked with the Master of the High Court’s register. Failure to comply could result in fines up to R10 million, imprisonment for up to 5 years, or both.
• Increased Reporting Requirements: Trust returns now require detailed information about assets, income, and any foreign or local amounts vested in the trust as a beneficiary of another trust. The information must align with IT3(t) reporting, which includes trust distributions, beneficiary details, and financial flows. The first IT3(t) certificates are due by the end of September 2024 for the 2023/24 tax year.
• Beneficiary Income Reporting: Trustees must provide beneficiaries with details of their 2024 trust earnings for inclusion in their personal tax returns, as SARS will not pre-populate this data for the 2024 assessment year.

Let Us Guide You Through Trust Tax Season

Surviving Trust Tax Season 2024 without professional support is a daunting task. The complexity of the new requirements increases the risk of errors, and the time needed to upload extensive supporting documents is significant. With SARS intensifying efforts to improve compliance and enforce penalties, it’s more important than ever to ensure everything is done correctly.

Fortunately, our expert team is here to help you navigate this challenging tax season. We’ll make sure all compliance requirements are met, and you avoid costly penalties.