Trust Filing in 2026 and the Records Behind a Complete Return

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Trust Filing in 2026 and the Records Behind a Complete Return

• 30 September 2026
• Trust Income / Gain Allocations
• The Tax Faculty

Trust registration, ITR12T and IT3(t) returns, provisional tax, passive assets and supporting records for the 2026 filing season.

At a glance

A trust return must reflect the trust's actual affairs, including passive assets and the expenditure associated with them. Income-tax, third-party reporting and provisional-tax obligations must each be addressed. Inactivity does not justify omitting financial information or treating a nil return as self-explanatory.

Changes to the ITR12T, greater use of IT3(t) information and SARS's focus on disparities in nil returns and assessed-loss positions increase the importance of consistent underlying records across the trust's submissions.

The calendar contains different obligations

The 2026 trust compliance calendar contains several separate obligations. Each deadline must be linked to the relevant return or payment. A calendar entry does not mean that a payment necessarily arises in every trust's circumstances.

An IT3(t) return is required even where it is a nil return. It is a separate submission from the ITR12T. The January ITR12T deadline does not defer the September third-party reporting deadline.

Practice point: Maintain separate entries for the IT3(t), ITR12T and relevant provisional-tax obligations. For each trust, record the responsible person and the status of each submission or payment.

Registration and the persons required to file

All resident trusts must be registered and submit returns. Certain non-resident trusts must also file under the filing-season notice; their position requires examination against the applicable criteria. A trust must register within 21 days of registration with the Master.

The appointed representative taxpayer, whether a trustee or tax practitioner, must submit the ITR12T within the prescribed period through eFiling. The closing date is 22 January 2027 for both provisional and non-provisional trusts.

Practice point: Check the trust's registration and representative arrangements when accepting or reviewing the engagement. For a non-resident trust, establish the applicable filing test before concluding whether a return is required.

Return enhancements depend on consistent information

The ITR12T enhancements concern reference information, prepopulation and beneficial-ownership reporting. Each affects the information to be assembled and reconciled before submission.

The ITR12T season opens before the IT3(t) deadline. That sequence makes it necessary to check whether prepopulated information is complete and consistent when the return is prepared. The order of the deadlines does not, by itself, justify postponing every ITR12T submission until after the IT3(t) deadline.

The return contains fields addressing section 25B(4)–(6). Completion of those fields requires consideration of the applicable statutory allocation rules. A change to the form should not itself be treated as an explanation of the substantive tax treatment.

Practice point: Compare prepopulated information with the underlying beneficiary, income and expenditure records. Treat a discrepancy as an item to resolve, rather than assume that prepopulation establishes its correctness.

Passive trusts and nil returns

The South African Revenue Service (SARS) intends to identify, analyse and resolve disparities in nil returns and assessed-loss positions. A passive trust cannot assume that it may file a nil return merely because it is not actively producing income.

The example given is a trust holding a holiday home or other immovable property. The existence of such an asset, its associated liabilities and its upkeep remain relevant to disclosure. The absence of active income production does not remove the obligation to report assets, liabilities and related financial information accurately.

A nil return or an assessed loss must be supported by the records and underlying circumstances. A nil return is not necessarily incorrect, but neither does disclosure of expenditure establish its deductibility. Completeness of the return and the tax treatment of a particular asset or expense are separate questions.

A simplified return for passive trusts does not create an exemption from disclosure or filing. Eligibility and the applicable fields still require attention before that return is used.

Practice point: Review trusts holding property or other passive assets before accepting a nil position. Reconcile the proposed return to the asset register, liabilities and actual income and expenditure.

Termination and deregistration are separate steps

Where a trust has ceased operating and has been terminated under its deed and applicable law, deregistration must be addressed with both the Master of the High Court and SARS. Deregistration with the Master does not automatically deregister the trust with SARS.

A SARS deregistration request must be supported by the relevant documents and may be submitted by email or through a branch appointment. The practitioner should confirm the applicable submission channel and supporting requirements before lodging it.

Practice point: For terminated trusts, obtain evidence of the position with both authorities. A record from one institution does not establish completion of the other process.

Trustees and the supporting file

The Trust Property Control Act imposes duties of care, diligence and skill on trustees. Appointment of a practitioner does not remove trustees' responsibility for compliance. That responsibility for the trust's tax affairs must be distinguished from any separate question of personal liability for its tax debt (Trust Property Control Act, trustees’ duties of care, diligence and skill).

The supporting file should contain the trust deed, income and expenditure information, proof of tax credits, annual financial statements, beneficial-ownership documentation, minutes and resolutions concerning trustee appointments, and letters of authority. As a matter of sound record-keeping, retain all relevant minutes and resolutions, including those approving distributions.

The file should support the relationship between distributions, beneficiary reporting and the amounts declared. Documents must be available for submission with the return or when requested. A comprehensive retention file should be distinguished from the documents that must actually be uploaded for a particular return.

Practice point: Assemble the supporting file before finalising the return. Confirm which documents must accompany the submission and retain the other records needed to substantiate it, including relevant resolutions.

Practitioner action checklist

The preparation of the return must begin with a complete account of the trust's affairs. Accurate third-party data, supported nil or loss positions, and separate attention to filing and deregistration obligations follow from that record. Resolve discrepancies against the underlying documents before submission.

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