The South African Revenue Service (Sars) is preparing for the opening of the trust filing season on September 19 and is urging trustees to ensure their trusts are properly registered and tax compliant.

According to Bloemfontein Courant, trusts have until January 22, 2027, to submit their Income Tax Return for Trusts (ITR12T). Sars reminded trustees that they remain legally responsible for ensuring the information submitted is accurate, even if they use a tax practitioner to assist with the return.

A key focus this year will be trusts submitting nil returns or reporting assessed losses. Sars said passive trusts cannot simply declare nil returns because they are not actively generating income.

Assets such as holiday homes and other immovable property, as well as related income and expenditure, must still be declared.

Sars will analyse inconsistencies in nil returns and assessed-loss positions to improve compliance and reporting accuracy.

The filing season also coincides with the introduction of administrative non-compliance penalties for trust filing obligations.

However, Sars has improved the ITR12T to make compliance easier, including pre-populating certain income, vested amounts and beneficiary information from IT3 (t) third-party data.

Trustees can file their ITR12T electronically through Sars eFiling or manually at a Sars service centre by appointment. Trusts with 10 or fewer beneficiaries may also have their return captured at a Sars branch, provided an appointment is booked and the completed return is printed beforehand.

They should have the trust deed or will, income and expenditure records, proof of tax credits, annual financial statements or administration accounts, beneficial-ownership documents, minutes and resolutions relating to the appointment of trustees, and letters of authority available when filing or if requested by Sars.

Trustees must also report changes to a trust’s registered details, including changes to trustees, representatives and contact information, within 21 business days. Failure to update these details may be regarded as a criminal offence under the Tax Administration Act 28 of 2011.

IT3 (t) third-party returns are due by September 30.

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