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Income Tax Returns for Trusts

Income Tax Returns for Trusts

Income Tax Returns for Trusts

Enhancements to the Income Tax Return for a Trust (ITR12T)

As part of SARS’ commitment to maintain high levels of efficiency and compliance, enhancements to the Income Tax Return for Trusts will be implemented from 15 May 2017.

The following are the critical changes made to the ITR12T:

  • You will no longer be allowed to claim a foreign tax credit for services rendered in South Africa which was taxed outside South Africa. However, you will be able to claim a deduction from income for services rendered in South Africa which was taxed outside of the Republic. The ITR12T is updated to cater for repealed section 6quin fields.
  • The Income Tax Act (section 11D) provides for a deduction in terms of Research and Development which is meant only for companies and has therefore been removed from the ITR12T
  • The enhancements to the ITR12T are an extension of those implemented during Tax Season 2016:
    • The Statement of Assets and Liabilities now distinguishes between Interest Bearing and Interest Free loan accounts.
    • The sections dealing with rental and farming income have also been enhanced.

    Various other changes were made including changes to the:

    • Rental Income declaration; and
    • ITA34.

    Please be aware that you will not be able to change or delete any IRP5 data that has been received from a third party and pre-populated on the return.

    If you notice any incorrect pre-populated information on the return, you are advised to contact the employer or service provider in order for them to rectify it as you will not be able to change or delete any IRP5 data received from a third party.

    Pre-populated information received from a third party may have been changed or updated and in order for this information to pre-populate, you will have to click ‘Refresh’ to continue.

    An example of the new form will be available from Monday, 15 May 2017 and will be published on this page.

    Top tip: It is crucial that SARS has the correct and up-to-date taxpayer information. When completing the ITR12T return, the first question under ‘Trust Details’ is ‘Have the banking, contact and trustee details of the trust been verified and confirmed as correct?’ If you answer ‘NO’ to this question, you will not be able to submit the ITR12T return until these details of the trust have been verified and confirmed as correct.

    The existing taxpayer information on eFiling can be viewed by clicking ‘Legal Entity Profile’. If you have power of attorney over the trust, you can also visit your nearest SARS branch if you need to update details.

    Top tip: While completing the ITR12T please click ‘Save’ regularly so that you don’t lose any information you have already captured in the event that SARS eFiling times out.

    The updated Complete the ITR12T guide, the Step-by-Step Guide to complete your ITR12T via eFiling and the Comprehensive Guide to the ITR12 for Trusts will be published on Monday, 15 May 2017 on this page.

    Please remember that SARS no longer accept Trust returns (ITR12T) via post.

    What is it?
    The Income Tax Return for Trusts is called the Income Tax Return for Trust (ITR12T).

    When did it come into effect?
    The updated form (ITR12T) is available from 12 October 2015.

    How will I get the ITR12T?
    The form (ITR12T) is available on eFiling or may be captured at a SARS branch on behalf of the representative/Tax Practitioner. You need to fill in the form before sending it to the branch for capturing.

    An example of the ITR12T is available for downloading. Should you visit a SARS branch for capturing, you’ll need to fill it in before going to the branch. For more information on how to complete ITR12T, click here.

    Top Tip: Asking for the ITR12T to be posted to you will no longer be an option and trust returns received via post will be rejected.

    How to submit the ITR12T?

    • Complete and submit ITR12T electronically on eFiling
    • Submit ITR12T via a third party independent software vendor which will submit to SARS via eFiling web services
    • Visit nearest SARS branch for capturing of ITR12T on SARS system. Capturing of the ITR12T at a SARS branch will only be available. If the number of persons who transacted with the trust is limited to a maximum of 10, or else the trust must register for eFiling.

    Need help?  Contact one of our friendly staff