JHB 
A new era of accountability for South African trusts
After years of relative leniency, the South African Revenue Service (SARS) is set to adopt a far stricter stance toward trust tax compliance. While no formal notice has yet been issued, the South African Institute of Chartered Accountants (SAICA) has informed members that SARS intends to begin levying administrative non-compliance penalties on the ITR12T (Income Tax Return for Trusts) from February 2026.
This development marks a clear policy shift and one that signals SARS’s growing determination to close compliance gaps in the trust environment.
Annual tax returns now mandatory for all trusts
SARS has reiterated that every trust (active, dormant, or of low activity) must submit an annual income tax return, regardless of the level of activity within the entity. This removes any remaining ambiguity about “inactive” trusts escaping compliance. The filing requirement arises from the legal existence of the trust, not from its financial activity.
The official 2025/2026 trust filing season runs from 20 September 2025 to 19 January 2026, and trustees must ensure that submissions are complete, accurate, and on time to avoid potential penalties.
IT3(t) submissions: SARS’s new compliance lever
Beyond annual returns, IT3(t) submissions have emerged as one of the most critical compliance areas for trusts. These third-party reports require disclosure of distributions and vesting information, data that directly feeds into SARS’s systems for cross-verification against beneficiaries’ tax affairs.
Failure to submit IT3(t) information on time, or incomplete submissions, will be visible to SARS. These reports form a cornerstone of SARS’s enhanced data-driven compliance approach, making late or inaccurate submissions a clear risk factor for trustees and administrators alike.
Administrative penalties are swift and automated
According to SAICA’s communication, SARS plans to implement automated administrative penalties for non-compliant trusts from February 2026. Once introduced, this system will trigger penalties swiftly, with limited recourse for trustees once issued.
Trusts that have neglected their compliance obligations should use the months leading up to the new filing season to rectify historic non-compliance. Once the penalty framework is activated, remedial action will likely be far costlier.
What trustees should do now
The implications of SARS’s shift are far-reaching:
Conduct a compliance audit: Identify and regularise dormant or non-filing trusts before penalties take effect.
Educate trustees: Ensure trustees understand their obligations under the Income Tax Act.
Adopt a multidisciplinary approach: Coordinate tax, accounting, and fiduciary expertise to ensure end-to-end compliance.
At MMS Group, we are already working with trustees to bring historic submissions up to date and to establish compliant frameworks for 2026 and beyond.
Trust compliance is no longer optional
SARS’s renewed focus on trust compliance represents more than an administrative change, it’s a cultural shift toward greater accountability. Trustees can no longer rely on past leniency or assume that dormant trusts will go unnoticed.
The message is clear: every trust must file, disclose, and comply.
Those that fail to do so will soon face the financial and administrative consequences of non-compliance.
If you are a trustee of a trust, and need help assessing your compliance status, reach out to us without delay. We offer specialized accounting and tax services for trusts.