The South African Revenue Service (SARS) is set to enforce administrative penalties on trusts for non-compliance with tax regulations starting April 2025. This move marks the end of SARS’ lenient approach towards trusts failing to submit annual income tax returns and IT3(t) third-party data returns.
Key points:
Penalties will be applied retrospectively for non-submission of trust income tax returns from April 2025.
All trusts, operational or not, are required to submit annual tax returns.
Accurate and timely filing is crucial to avoid costly punitive measures.
Important note on IT3(t) submissions:
SARS will not issue penalties for late or non-submission of IT3(t) returns for the 2024 tax year. However, trustees are strongly encouraged to submit these returns to establish a compliant track record.
Reminder: Trust Bank Account Requirement
It is crucial to note that ALL trusts are required to have a separate bank account, as stipulated in the Trust Property Control Act 57 of 1988. This legal requirement applies to all trusts, regardless of their operational status or perceived dormancy.