JHB 
The 2025 tax season places trusts firmly in SARS’s spotlight. With enhanced return requirements, tighter legislative rules, and a renewed focus on beneficial ownership, trustees can no longer afford a “tick-box” approach to compliance.
SARS’s strategy is clear: close loopholes, strengthen transparency, and hold trustees accountable. For trust representatives, administrators, and beneficiaries, this means stricter deadlines and more complex reporting requirements.
Key legislative updates affecting trusts
Recent changes to the Income Tax Act highlight SARS’s sharper stance:
Flow-through principle restricted:
Income and capital gains vested in non-resident beneficiaries are now taxable in the trust itself, not passed through.
Expanded definition of a trust:
Portfolios of collective investment schemes and hedge fund portfolios now fall under the statutory definition.
Foreign tax credits:
Section 6quat now allows credits for foreign capital gains taxes, with carry-forward of unused credits for up to six years.
Learnership allowance:
Extended until March 2027, impacting trusts engaged in employment-linked training.
These changes significantly affect tax planning, particularly for trusts with offshore beneficiaries.
New compliance demands in the ITR12T
SARS has modernised the ITR12T trust return to improve accuracy and enforcement. Key enhancements include:
Automated farming income and partnership calculators
Expanded disclosure requirements for vested amounts and capital losses
Mandatory checks for special trusts (type b) linked to minor beneficiaries
More detailed beneficial ownership fields, including provisions for deceased founders and unnamed classes of beneficiaries
In short, trustees are expected to provide full transparency.
The risks of non-compliance
Failure to meet SARS’s expanded compliance expectations exposes trustees to:
Rejections or delays in assessments
Penalties and interest for late or inaccurate submissions
Audits and deeper scrutiny across related tax matters
Reputational risks, particularly where beneficiaries are affected
The stakes have never been higher, and SARS’s increased use of automation means discrepancies are flagged faster than before.
Why trustees need professional support
Trust administration is no longer a routine exercise. Each filing season now demands specialist tax knowledge to:
Correctly interpret new legislative provisions
Capture all necessary disclosures in ITR12T
Align trust structures with compliance requirements
Proactively manage tax planning for resident and non-resident beneficiaries
Professional guidance ensures trustees meet obligations while minimising unnecessary tax leakage.
Final thoughts
With SARS tightening its grip on trusts in 2025, trustees must approach compliance with care and precision. The combination of new rules, expanded disclosures, and closer enforcement underscores the importance of getting it right the first time.
At MMS Group, we specialise in guiding trustees and their advisors through this evolving compliance landscape. If you administer a trust, contact our team to ensure your trust remains compliant and protected under the latest SARS rules.