2025 Trusts Filing Season Opens: SARS Sets Dates and Stresses Compliance
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SARS has officially announced the opening of the 2025/2026 Trust Filing Season, which runs from 20 September 2025 to 19 January 2026. Trustees are reminded that all trusts, whether economically active or not, must submit an annual income tax return. A trust is regarded as a taxpayer, and the trustee acts as the representative taxpayer. Trustees are legally obligated to ensure that the trust return is filed, either personally or through a registered tax practitioner.
This year’s filing season introduces several legislative and form changes to the Income Tax Return for Trusts (ITR12T). To support these updates, SARS has published two updated guides:
IT-AE-36-G02 – Comprehensive Guide to the Income Tax Return for Trusts – External Guide
IT-AE-37-G02 – Step by Step Guide to complete your Trust return via eFiling – External Guide
What is new?
The main enhancements are listed below.
Section 1 of the Income Tax Act – Definition of a trust
The definition of a trust has been amended, and it now includes a portfolio of a collective investment scheme and a portfolio of a hedge fund collective investment scheme.
Trusts can claim foreign tax credit (Section 6quat(1A) (a)(iii))
From 1 March 2025, trusts may claim foreign tax credits on income or capital gains earned abroad. The credit must not exceed the portion of South African tax related to that income. If the foreign tax paid is higher, the excess will be carried forward for up to six years, and SARS will track and maintain these carryover amounts to prevent double taxation.
Taxation of non-resident beneficiaries of trusts (Section 25B)
From1 March 2025, section 25B was amended to limit the flow-through principle to resident beneficiaries only. This means that all income and capital gains distributed to non-resident beneficiaries will be taxed in the hands of the trust. As a result, trusts with non-resident beneficiaries may be required to submit IRP6 returns to meet provisional tax obligations.
Learnership agreements (Section 12H) extended
The current sunset date of 1 April 2024 was extended to 31 March 2027.
Limitation of losses Section 25B(4) – (6) wizard question
A new wizard question has been added to address the limitation of losses and ascertain how s25B(4)-(6) impacts on the calculation of net income of a trust and may be used to improve the return in future years for such scenarios.
Beneficial Ownership
New beneficial owner category now includes an ‘unnamed beneficiary’. If this category is selected, details of the unnamed beneficiary(ies) must be included in the free text field provided.
A new question namely, “Is the founder deceased?” has been added on the beneficial owner section of the return to address a common issue raised where the founder is deceased. This is mandatory to complete if founder is selected as the beneficial owner category.
Form Wizard and field amendments:
Trust details section has been updated to include a question for the trust to confirm if the youngest beneficiary is younger than 18 years at the end of the year of assessment, if the trust is classified as a special (b) trust.
Capital Gain / Loss section to confirm if the trust is a bewind or vesting trust.
Trust participation section has been updated to include a question for the trust to confirm if a IT3(t) return was submitted to SARS.
Taxable in Trust vested and not vested in foreign beneficiary fields has been updated to include “i.t.o. s25B” under all income fields for local and foreign income.
Farming and Farming Partnership containers has been amended to include new fields as per legislation updates and to make it simpler to complete.
Special Depreciation and Capital Improvement containers has been moved to after Enhanced Renewable Energy – s12BA container to improve readability and usability.
eFiling enhancements include:
A verification message to confirm if the youngest beneficiary is younger than 18 years at the end of the year of assessment, if the trust is classified as a special (b) trust.
The refresh functionality has been enhanced to include farming information (IT48 and IT48V) from the previous year of assessment.
Unsure, or Ran Into Problems? Do Not Miss the FAQs
Find a list of FAQs on the SARS Trust Website - including these and more:
A standard trust is taxed at a flat 45% rate. Special Trusts (e.g. those created for people with disabilities) are taxed on a sliding scale like individuals, which can result in lower tax rates.
To qualify as a Special Trust, you must apply and provide supporting documents to SARS.
Trust returns can be submitted through SARS eFiling.
If your trust has 10 or fewer beneficiaries, you can request assistance at a SARS branch—after completing most of the return.
If you answer “No” to confirming the trust’s banking, contact, or trustee details, you won’t be able to proceed with the return until those details are verified.
If a beneficiary (individual, company, or trust) is receiving income from the trust, their income tax reference number must be included in the return.
Supporting Documents for Donations / Contributions / Loans required will be detailed in a formal communication from SARS, depending on the nature of the transaction.
Contributions, Donations and Distributions are declared differently in the tax return. Contributions and donations are money or assets given to the trust. Distributions are funds or benefits paid out to beneficiaries.
For loans that are repayable on demand, leave the “maturity date” field blank on the return.
If your trust is a registered PBO, submit the PBO reference number in the correct format on the ITR12T form.
Error: “Income Source Code” message usually means a mismatch between income source codes in the Trust Participant Schedules and the main return. Double-check all codes to resolve it.
Trusts cannot transfer capital losses to beneficiaries. These losses must remain within the trust.
Trusts can file an objection via eFiling if they disagree with a SARS assessment.
If the objection is rejected, an appeal can be submitted using the Notice of Appeal (ADR2) form—only if an objection was filed first.
If no income was distributed during the year, the trust may not need to submit an IT3(t) return. NIL returns aren’t always required—check SARS guidance.
For more information, see the Trusts webpage.
You can also view the informative videos on Trusts below:
