Key Dates and Obligations for Filing Trust Returns at SARS You Must Know

Filing trust returns with the South African Revenue Service (SARS) can be complex, especially if you are not familiar with the important deadlines and tax obligations involved. Missing key dates or failing to meet requirements can lead to penalties and interest charges. This guide highlights the essential dates and responsibilities you need to be aware of when managing trust returns, helping you stay compliant and avoid unnecessary stress.

Understanding Trust Returns and SARS Requirements

Trusts in South Africa are separate legal entities for tax purposes. This means trusts must file their own income tax returns annually. The trust’s tax year usually runs from March 1 to the last day of February the following year. SARS requires trusts to submit an Income Tax Return (ITR12T), which details the trust’s income, deductions, and taxable amount.

Trustees are responsible for ensuring returns are filed correctly and on time. Failure to comply can result in SARS imposing penalties or interest on outstanding amounts.

Important Dates for Filing Trust Returns

Knowing the deadlines is crucial. SARS sets specific dates for trusts to submit their returns and make payments. These dates can vary depending on whether the trust files manually or electronically, and whether it uses a tax practitioner.

• Manual Filing Deadline: August 31 of the tax year

• Electronic Filing Deadline: September 30 of the tax year

• Extended Deadline with Registered Tax Practitioner: February 28 of the following year

  
  

For example, for the tax year ending February 28, 2024:

• Manual filing must be done by August 31, 2024

• Electronic filing must be done by September 30, 2024

• If a tax practitioner is registered with SARS, the deadline extends to February 28, 2025

  
  

Trustees should plan ahead to gather all necessary documentation well before these dates.

Key Tax Obligations for Trusts

Trusts have several tax obligations beyond just filing returns. Understanding these will help trustees manage the trust’s affairs properly.

Income Tax Payment

Trusts must pay any tax due within the prescribed period. SARS may require provisional tax payments during the year, depending on the trust’s income. Provisional tax is paid in two installments:

• First payment: August 31

• Second payment: February 28 (or 29 in a leap year)

  
  

If the trust’s income is below the threshold for provisional tax, these payments may not apply.

Provisional Tax Returns

Trusts that expect to owe tax must submit provisional tax returns twice a year. These returns estimate the taxable income and calculate the provisional tax payable. Filing these returns on time helps avoid penalties.

Capital Gains Tax (CGT)

Trusts are also liable for capital gains tax on the disposal of assets. CGT must be included in the annual tax return. Trustees should keep detailed records of asset purchases and disposals to calculate gains accurately.

Donations Tax

If the trust receives donations, donations tax may apply. Trustees must declare any donations and pay the relevant tax within the required timeframe.

Practical Tips for Trustees

Managing trust tax obligations can be demanding. Here are some practical tips to help trustees stay on track:

• Keep accurate records of all income, expenses, and asset transactions throughout the year.

• Use SARS eFiling to submit returns electronically, which is faster and reduces errors.

• Register a tax practitioner if you want to benefit from extended filing deadlines and expert assistance.

• Set reminders for key dates such as provisional tax payments and filing deadlines.

• Review SARS communications regularly to stay updated on any changes to tax laws or deadlines.

  
  

What Happens if You Miss Deadlines?

Missing SARS deadlines can lead to penalties and interest charges. SARS may impose:

• Late submission penalties starting at R250 and increasing depending on how late the return is.

• Interest on unpaid tax calculated daily from the due date until payment.

• Additional audits or investigations if returns are consistently late or inaccurate.

  
  

Trustees should act quickly if they realize a deadline will be missed. SARS allows for requests to extend deadlines in exceptional cases, but these must be made before the due date.

Summary of Key Dates and Actions

Date	Action	Notes
August 31	Manual	For trusts filing manually
September 30	Electronic filing deadline	For trusts filing via SARS eFiling
February 28 (next year)	Extended filing deadline with tax practitioner	Only if registered with SARS
August 31	First provisional tax payment	For trusts liable for provisional tax
February 28 (next year)	Second	For trusts liable for provisional tax

Trustees should mark these dates clearly and prepare documentation early.

Managing trust returns at SARS requires attention to detail and awareness of deadlines. By understanding the key dates and obligations, trustees can avoid penalties and ensure the trust remains compliant with tax laws. Start preparing early, keep good records, and consider professional help if needed to make the process smoother.

If you are a trustee, take action today by reviewing your trust’s tax status and setting up a calendar with all SARS deadlines. Staying organized is the best way to avoid last-minute stress and costly mistakes.

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