Trust Income Tax Return Filing Updates
The South African Revenue Service (SARS) announced significant updates to the Trust Income Tax Return (ITR12T) filing process set to take effect from 16 September 2024. These enhancements aim to streamline the process, making it simpler for trustees to comply with tax obligations.
Compliance and Filing Details
Trusts must file their ITR12T annually within the stipulated filing period from 16 September 2024 to 20 January 2025.
It is mandatory to upload relevant supporting documents, i.e. the trust instrument, financial statements, and trustee resolutions with the tax return.
Major Changes and Additions
Renewable Energy Incentives (Section 12BA):
SARS has improved the tax incentive for investments in renewable energy. This measure is designed to boost private sector engagement in this crucial area.
Urban Development Zone Extension (Section 13quat):
The tax incentive for urban development zones has been extended for an additional two years, now expiring on 31 March 2025.
Clarity on Loans to Trusts (Section 7C):
The guidelines have been refined regarding loans or credits extended to trusts by connected persons, specifically for acquiring or improving a primary residence.
Trustee Eligibility Check (Section 246):
A new check has been integrated into the form to verify that appointed trustees are not disqualified from serving.
Enhancements in Donation Reporting (Section 18A):
The form now allows trusts to report donations to up to 20 approved organisations, facilitating more comprehensive disclosure.
New Request for Reduced Assessment Process (Section 93):
Trusts can now manage requests for reduced assessments more efficiently through the new RRA02 form feature.
Beneficial Ownership Reporting:
Clarifications have been made to aid in the accurate reporting of unnamed beneficiaries.
Simplified eFiling Process
Trustees are encouraged to use the SARS eFiling platform for a more convenient filing experience. The platform allows for easy registration, form customisation, and submission of required documents.
For further details on these changes, trustees and tax practitioners can visit the SARS website or directly access the Trust Registration and Filing sections online.
Want to know more? Read the notice received from SARS for more information here.