By Ronél Nieuwoudt
16 April 2026
The South African Revenue Service (SARS) has intensified its focus on trust compliance, introducing automated penalties and stricter enforcement.
In February 2026, SARS issued final demands to trusts with outstanding 2024 and 2025 returns. From 4 May 2026, administrative penalties will be applied to non-compliant trusts.
What You Need to Know
1. Monthly Administrative Penalties
Trusts that fail to submit ITR12T returns will receive penalties via AP34 notices. These penalties will recur monthly until compliance is achieved. Penalties will range from R250 to R16 000 per month (depending on income or assessed loss).
2. No Dormant Trust Exemption
All trusts, dormant, shelf, or non-trading, are required to submit annual tax returns. No exceptions apply.
3. IT3(t) Reporting Is Mandatory
Trustees must submit IT3(t) returns detailing beneficiaries, distributions, and vested income. SARS uses this data to identify discrepancies and undeclared income.
4. Trustees May Be Personally Liable
Non-compliance may result in trustees being held personally responsible for outstanding taxes, penalties, and interest.
Staying Compliant
To avoid penalties, ensure that:
- All trust details with SARS are up to date
- Annual ITR12T returns are submitted (even if dormant)
- Outstanding returns (2024 and 2025) are prioritised
- IT3(t) returns are submitted accurately
- Records are kept for at least five years
- SARS correspondence is addressed promptly
Need Help?
Navigating trust compliance can be complex, especially with the increasing scrutiny from the South African Revenue Service. If you require assistance in ensuring that your trust remains fully compliant, feel free to contact our team, we are here to help you stay ahead of your obligations.
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