“Trustees remain accountable for all tax matters of a trust, regardless of the economic activity of the trust.” (SARS)

The official trust filing season for the 2025 year of assessment is now open for both provisional and non-provisional taxpayers – and SARS has issued stern warnings to trustees to fulfil their tax obligations. 

Who must file trust tax returns? 

 A trust is included under the definition of a “person” in terms of the ITA (Income Tax Act no.58 of 1962) and is therefore regarded as a taxpayer. 

All South African trusts, including resident and non-resident trusts, that are registered for income tax, must file a tax return annually, even if the trust is not economically active. 

A trustee is the representative taxpayer of a trust. Trustees or representatives must register the trust for income tax and file the required tax returns annually. Alternatively, a registered tax practitioner can be appointed as the representative taxpayer.

What must be done?

 Taking into account recent changes to the legislation, trustees must submit their returns for the 2025 year of assessment and file the mandatory supporting documents listed further below. 

Recent legislative changes

• The “flow-through” principle is now limited to resident beneficiaries, so all amounts vested to non-resident beneficiaries are taxable in the hands of the trust. This also affects the submission requirements for provisional tax (IRP6).
• Foreign tax credits for taxes paid on income or capital gains earned in a foreign jurisdiction can now be used to prevent double taxation.
• From the 2025 tax year onwards, unused foreign tax credits will be carried forward automatically to the subsequent years of assessment, up to a maximum of six years.
• The Section 12H Learnership Agreement is extended to 31 March 2027.
• The definition of a trust is updated to include collective investment scheme portfolios.
• SARS has issued new rules on how losses relating to distributions are limited under section 25B.

Return submissions

The final deadline for the submission of provisional and non-provisional Trust Income Tax Returns (ITR12Ts) is 19 January 2026.

Mandatory supporting documents

Required Documents	Details
Trust instrument	Latest deed or will
Certain transactions and financial flows	Income sources and distribution of income; proof of any tax credits
Financial information	Financial Statements/Annual Administration Account
Parties connected to a trust	Beneficial-ownership document, including detail per entity listed
Other documents	Letters of Authority and Minutes and Resolutions of trustee meetings
Foreign trust document (if applicable)	Controlled Foreign Company (IT10)
Mining document (if applicable)	Mining Schedule A and B

Source: SARS

File on time!

Trustees and administrators should take note that all the return submissions and supporting documents are due by 19 January 2026 – just days into the new year.

Submitting within the deadlines is necessary to comply with SARS regulations. Late submissions can lead to administrative penalties, interest charges, and additional steps.

What else must be done?

Because a trust is also a provisional taxpayer, trustees should be aware that a trust is further required to submit provisional tax returns (IRP6) twice a year in August and February.

In addition, trustees are also required to submit an IT3(t) third-party data return that provides details of amounts vested to beneficiaries. 

Finally, all income derived from a trust must be declared by any resident beneficiaries of trusts in their own income tax returns.

Looking ahead: Key tax dates for trusts

• 19 January 2026: Final deadline for provisional and non-provisional trust tax return (ITR12T) submissions.
• 28 February 2026: Second provisional tax payment for the 2026 assessment year.
• 31 August 2026: First provisional tax payment for the 2027 assessment year.
• September 2026 (date TBC): Opening date for Income Tax Returns for Trusts (ITR12T) submissions for 2026.
• 30 September 2026: Deadline for IT3(t) return submissions for trusts which declare amounts vested to beneficiaries’ income.
• 30 September 2026: Top-up provisional tax payment for the 2027 assessment year.

Consequences of non-compliance

SARS takes a zero-tolerance approach to taxpayers who do not register for the applicable tax, file tax returns, declare income accurately, or pay their tax debt. 

Non-compliance with these obligations is a criminal offence and will attract penalties and interest.

Surviving Trust Tax Season 2025 and beyond

 Never fear! Our team is well experienced in keeping trusts compliant throughout the year. We don’t just contain costs and prevent hassles with the taxman, we also provide peace of mind. 

If you need assistance meeting the next trust tax deadline on 19 January 2026, simply reach out to us. It’s the easiest way to survive this trust tax season, and those ahead. 

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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“Profile hijacking points to pervasive cybercrime with global links.” (Edward Kieswetter, SARS Commissioner)

The Tax Ombud has again warned South Africans about the concerning increase in eFiling profile hijackings, which has spurred the Office of the Tax Ombud (OTO) to launch a survey of taxpayers’ experiences and a systemic investigation into SARS.

What is eFiling profile hijacking?  

eFiling profile hijacking involves cybercriminals gaining unauthorised access to taxpayers’ SARS eFiling accounts. Once inside, they change the security details and banking information, and submit fraudulent tax returns to redirect the refunds into their own accounts.   

Methods such as SIM swaps and phishing are commonly employed to get access to taxpayers’ eFiling profiles. Using calls and fraudulent SARS text messages, emails and letters of demand, scammers pose as SARS officials or tax advisors, often pretending to want to assist taxpayers to get their SARS refunds. 

Concerns have also been raised about possible internal fraud and insider involvement at SARS and certain banks.

SARS systemic investigation 

While SARS acknowledges the rise in eFiling profile hijackings, it emphasises that although individual profiles have been compromised, the SARS system itself has not been breached. 

SARS adds that additional security measures have been implemented and that it is collaborating with financial institutions and the OTO to combat the scourge of profile hijacking. 

How to safeguard your eFiling profile 

SARS has issued the following advice:

• Avoid sharing your eFiling login details. SARS will never request OTPs, passwords or bank details via calls, emails or text messages.
  
• Use strong and unique passwords and update them regularly.
  
• Enable two-factor authentication for an additional layer of security.
  
• Regularly check your eFiling profile and submitted returns for any unauthorised changes.
  
• Verify your bank account on eFiling before a refund is paid, even if there hasn’t been a change to the banking details.
  
• If you suspect your profile has been hijacked, change your login credentials promptly using another device, and report it immediately to SARS and to the SAPS as an identity theft case.

Rely on the expertise of a SARS registered tax practitioner such as ourselves. 

How we help keep your eFiling profile safe 

As your accounting and tax partner, we help you to keep your eFiling profile safe by, for example, keeping abreast of all the latest scams, validating the status of your tax affairs and any SARS enquiries or requests, and by using only official channels for interacting with SARS, especially when making payments. 

If you are concerned about the security of your SARS eFiling profile, or if you have been contacted by anyone offering assistance with obtaining a SARS refund, contact us immediately. 

We are the ally you need in the fight against profile hijacking.

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Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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“He said that there was death and taxes, and taxes were worse, because at least death didn’t happen to you every year.” (Terry Pratchett)

In SARS jargon, a ‘systemic issue’ is the underlying cause of a complaint that affects many taxpayers. These systemic issues may have to do with the way SARS systems function, how SARS drafts and implements policies or procedures, or even how it applies or disregards legislative provisions.

Over the years, collaboration between the Office of the Tax Ombud (OTO) and SARS has reduced the number of systemic issues from more than 20 to seven.

7 systemic issues at SARS

1. Delays in payment of refunds.
2. Non-adherence to dispute resolution timeframes and rules under the Tax Administration Act (TAA).
3. Undue hardship caused to taxpayers resulting from the way the Tax Compliance System (TCS) is designed.
4. Failure to respond to requests for deferred payment arrangements within the prescribed turnaround time (21 days).
5. Failure to respond to requests for a compromise within the prescribed turnaround time (90 days).
6. Failure to respond to requests for a suspension of payment within the prescribed turnaround time (30 business days).
7. Repeat verification for reduced assessments or for cases with the same risk and supporting documentation.

How do systemic issues affect my business?

Delayed refunds – especially VAT and diesel refunds – create massive cash flow challenges for companies, inhibiting growth and increasing the risk of business failure, especially for small businesses.

Similarly, the design of SARS’ Tax Compliance System has resulted in companies losing contracts or tenders, or not being paid by corporate or government clients. This is because the system may flag a company as non-compliant where payment arrangements or suspension of debt agreements are in place. The system also reflects non-compliance for immaterial transgressions – including, for example, minimal debt amounts such as R1 and outstanding returns or payments for which arrangements have been made with SARS; or even fraud committed by SARS or ex-SARS officials.

SARS’ non-adherence to dispute resolution timeframes and rules, and its delayed response to requests for payment arrangements, not only infringe on taxpayer’s rights, but also expose taxpayers to prolonged periods of ‘non-compliance’, despite their efforts to become compliant.

Repeat verification cases cost time and money, adding a further unnecessary compliance burden on taxpayers.

How we protect your interests

While these systemic issues are being addressed by SARS, and monitored by the Tax Ombud, SARS suggests that taxpayers rely on the expertise of a registered tax practitioner. As your SARS-registered tax practitioner, we protect your interests and rights as a taxpayer in the following ways:

• Careful compliance and excellent record-keeping are always the first line of defence when dealing with SARS – we help ensure that you have the correct processes in place to ensure both.
• Our team of tax experts can professionally and correctly represent your business in the event of a tax dispute with SARS.
• We understand the service levels and time frames outlined in the TAA and SARS’ Service Charter and we are experienced in using the official channels for complaints, including SARS’ Complaint Management Office.
• We easily recognise systemic issues and can help you escalate these challenges directly to the Tax Ombud – the quickest and most effective way to deal with most complaints relating to systemic issues.
• For other issues, after all avenues of recourse within SARS have been exhausted, we can assist your business to access the free and independent recourse offered by the OTO.
• We can advise your business on obtaining tax risk insurance protection against SARS tax audits and related disputes.

You can count on us to ensure your dealings with SARS are as efficient and cost-effective as possible! 

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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“Transactions or speculation in crypto assets are subject to the general principles of South African tax law and taxed accordingly.” (SARS)

A staggering 5.8 million South Africans hold a crypto asset, with Southern Africa boasting the largest uptake of Bitcoin in the world. 

SARS has not failed to notice the phenomenal growth of various digital currencies and crypto assets and is now dedicating substantial resources to ensure that crypto assets and trades are declared on taxpayers’ tax returns.

How are crypto assets taxed? 

While crypto assets are not considered legal tender, transactions or speculation in crypto assets are subject to the general principles of South African tax law. 

Normal income tax rules apply and affected taxpayers need to declare crypto assets’ income, and gains or losses in the tax year in which it is received or accrued.

Income from crypto assets transactions can be taxed under “gross income” or it can be seen as a capital gain (and subject to CGT). Whether an accrual or receipt is revenue or capital in nature is tested under existing tax law, of which there is plenty.

Taxpayers are also entitled to claim expenses associated with crypto assets accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.

Base cost adjustments can also be made according to the CGT rules. Gains or losses in relation to crypto assets can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

1. Crypto assets can be acquired through so called “mining” – the verification of transactions in a computer-generated public ledger through the solving of complex computer algorithms.
   
2. Investors can exchange local currency for a crypto asset (or vice versa) through crypto asset exchanges (which are essentially markets for crypto assets) or through private transactions.
   
3. Goods or services can be exchanged for crypto assets. Such transactions are regarded as barter transactions and the normal barter transaction tax rules apply.

The onus is on taxpayers to declare all income and gains related to crypto assets.

Stricter enforcement 

SARS has intensified its focus on crypto asset trading recently, significantly improving its capacity to detect crypto activity and non-compliance. They have done this by:

• Making greater use of advanced analytics, artificial intelligence, machine learning and algorithms
• Entering into data-sharing arrangements with crypto exchanges
• Establishing a dedicated Crypto Asset Unit

Since last year, SARS has been sending Audit and Request for Relevant Material Notices to taxpayers who have traded, invested or even used crypto assets for purchases.

This is possible because SARS now has access to trading data directly from crypto exchanges. This includes information on taxpayers who have traded in crypto assets but may not have disclosed these activities on their tax returns. In addition, through multilateral agreements, SARS is exchanging information with other tax authorities globally, in line with global tax enforcement trends.

What’s more, the establishment of SARS’ specialised Crypto Asset Unit is a clear indication that crypto asset taxation has become a priority.

What must I do? 

Taxpayers engaged in crypto asset transactions should ensure their tax affairs in this respect are fully compliant. Failure to comply could result in audits and investigations; interest and penalties at percentages as high as 200%, as well as further legal repercussions. 

The SARS Voluntary Disclosure Programme (VDP) provides an opportunity for taxpayers who have not declared their crypto holdings to achieve compliance and to avoid potential penalties and interest. However, the VDP has strict conditions, one of which is that the taxpayer must voluntarily approach SARS first, before SARS initiates further action. Once SARS has identified a taxpayer for audit, they can’t apply for the VDP.

How we protect your interests 

Relying on accounting and tax expertise is essential for correctly assessing any historical crypto tax liability and possibly making voluntary disclosures, correctly declaring current crypto asset transactions, and ensuring compliance requirements are met proactively.  

You can count on our experience and expertise in managing your crypto tax affairs! 

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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“My sincere gratitude goes to the compliant taxpayers and traders who have continuously played their part in building our country. Ndza khenza.” (SARS Commissioner, Edward Kieswetter)

Tax Filing Season 2025 officially opens on 7 July this year. This covers the 2024/2025 year of assessment: the period between 1 March 2024 and 28 February 2025.

During filing season, taxpayers complete and submit their tax returns, declaring their income and deductions to allow SARS to determine their final tax liability for the period under assessment. 

This year, for the first time, the majority of non-provisional taxpayers will be automatically assessed.

Dates to diarise

Auto assessed? Here’s what to do…

1. If you have been auto assessed, you will receive notification by SMS and/or email directly from SARS after 7 July. (Be sure to check with us that the notification you receive is legitimate!)
   
2. Access your auto assessed income tax return through any of SARS’ channels, such as the SARS MobiApp or SARS eFiling, to review and verify the completeness and accuracy of the information it contains. (Be sure to check with us if you are uncertain of any aspect of the auto assessment!) 
   
3. If you are satisfied with the auto assessment, and there is money owing to SARS, it must be paid to SARS by the stipulated date. If there is a refund due to you, it will be paid directly to your bank account within 3 working days, if your details with SARS are correct. 
   
4. If there is missing and/or inaccurate information on the auto assessed tax return, pertaining to either income or expenses which may affect the outcome of the auto assessment, it must be declared to SARS by submitting a ITR12 tax return by the 20 October 2025 deadline.

Not auto assessed? Here’s what to do…

Non-provisional taxpayers who are not auto assessed can start filing their tax returns from 21July 2025 until 20 October 2025. 

Provisional taxpayers (certain individual taxpayers and all companies) as well as trusts can start filing returns from 21July 2025 until 19 January 2026.

Top tips to streamline your tax filing season 

• Verify all SARS communications received to protect yourself from scams.   
• Check that all taxpayer and banking details are correct and updated with SARS to facilitate refunds and prevent identity theft and fraud. 
• Prepare all required documentation early to avoid last-minute delays and to expedite a possible SARS verification or audit. 
• Claim every tax rebate available to you to avoid paying more tax than required. 
• Ensure that your tax return submissions comply with current regulations.
• Be certain to meet the submission deadlines to avoid penalties.  

Fortunately, our team of seasoned tax professionals is ready to ensure you tick all these boxes. Let’s make this filing season an easy one!   

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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