Surviving Trust Tax Season 2025 and Beyond
Trust Tax Season 2025 officially opened in September, and SARS has issued important reminders to trustees: all trusts even those that are not economically active must file a tax return before 19 January 2026.
At BGR, we understand that trust compliance can feel complex and time-consuming. That’s why our team is here to help trustees stay organised, informed, and compliant, saving valuable time and avoiding unnecessary stress.
Who Must File Trust Tax Returns?
In terms of the Income Tax Act (No. 58 of 1962), a trust is defined as a “person” and is therefore treated as a taxpayer in its own right.
This means that all South African trusts, resident and non-resident, registered for income tax must file an annual return, regardless of whether the trust is economically active.
A trustee is considered the representative taxpayer and is responsible for registering the trust, submitting annual returns, and ensuring compliance with SARS regulations. Alternatively, a registered tax practitioner can be appointed to manage this process, a step that can be both timesaving and efficient.
What Needs to Be Done?
Trustees must file the 2025 tax return and submit the required supporting documents. SARS has also introduced a few key legislative changes for this season that trustees need to be aware of.
What’s New This Trust Tax Season
Flow-through (Conduit) Principle: The principle is now limited to resident beneficiaries, meaning any amounts vested in non-resident beneficiaries are now taxable in the hands of the trust itself.
Foreign Tax Credits: Trustees can now use credits for taxes paid on income or capital gains earned abroad to prevent double taxation.
Carry-Forward of Credits: Unused foreign tax credits can be carried forward automatically for up to six years.
Learnership Extension: Section 12H Learnership Agreements have been extended to 31 March 2027.
Trust Definition Update: The definition now includes collective investment scheme portfolios.
Distribution Losses: SARS has implemented new rules under Section 25B limiting how losses from distributions can be applied.
Key Deadlines to Remember
The final deadline for both provisional and non-provisional trust income tax returns (ITR12Ts) is 19 January 2026.
Mandatory Supporting Documents
| Required Document | Details / Description |
|---|---|
| Trust Instrument | Latest trust deed or will |
| Transactions & Financial Flows | Income sources, proof of distributions, and evidence of any tax credits |
| Financial Information | Financial statements or annual administration account |
| Parties Connected to the Trust | Beneficial-ownership register, including details of each listed entity |
| Other Core Documents | Letters of Authority, Trustee Meeting Minutes, and Resolutions |
| Foreign Trust Documents (if applicable) | Controlled Foreign Company (IT10) documentation |
| Mining Documents (if applicable) | Mining Schedule A and B |
Filing on time isn’t just about avoiding penalties, it’s about maintaining financial control and ensuring seamless administration for the year ahead.
Other Important Filing Requirements
A trust is also a provisional taxpayer, which means:
Provisional tax returns (IRP6) must be filed twice a year — in August and February.
An IT3(t) third-party data return must be submitted annually to declare amounts vested to beneficiaries.
Beneficiaries who receive income from a trust must declare it in their own individual tax returns.
Key Dates for Trustees
19 January 2026: Deadline for ITR12T submissions (provisional and non-provisional)
28 February 2026: Second provisional tax payment for 2026 assessment year
31 August 2026: First provisional tax payment for 2027 assessment year
September 2026 (TBC): Opening of ITR12T submissions for 2026
30 September 2026: Deadline for IT3(t) submissions and top-up provisional payments
The Consequences of Non-Compliance
SARS maintains a zero-tolerance policy toward taxpayers who fail to register, file, or pay on time. Non-compliance may result in penalties, interest, and even criminal charges.
Avoiding these outcomes begins with good planning — and having a trusted accounting team to guide you every step of the way.
How BGR Can Help
Navigating trust taxation doesn’t need to be overwhelming. With our experienced team managing your compliance and submissions, trustees can focus on what truly matters, growing and protecting the assets under their care.
We provide timesaving solutions that simplify your reporting obligations, ensure full compliance, and offer peace of mind throughout the year.
Need assistance before 19 January 2026?
Contact BGR today and let’s make sure your trust is compliant for 2025 and beyond.