Important Update for Trusts: New IT3(t) Submission Requirements
/SARS has introduced new reporting requirements for trusts, which significantly increase the compliance and administrative burden on trustees. Here’s what you need to know:
New IT3(t) Submission Requirements
All trusts, including dormant ones, are now required to submit an IT3(t) form. This requirement is similar to the submission of IRP5s and IT3(b) forms, where the information will be pre-populated on your income tax return.
This change aims to streamline the reporting process and ensure that all financial activities within trusts are accurately recorded and reported to SARS.
Key Points to Note:
Preparation of Financial Statements:
Before we can prepare the IT3(t) return, it is essential to first prepare the financial statements for your trust. This ensures that all financial information is accurate and complete, which is crucial for the IT3(t) submission.Disclosure of Distributions:
All distributions from the trust, including income, capital gains, and capital amounts, must be disclosed in the IT3(t) form. This includes detailed demographic information of trustees and beneficiaries, as well as all financial flows such as loans, donations, and distributions.Compliance Deadline:
The deadline for submitting the IT3(t) form is the end of September 2025 for the financial year ending February 2025. It is important to start the preparation process early to ensure timely and accurate submission.Administrative Details:
The IT3(t) form requires comprehensive information, including:Demographic details of trustees and beneficiaries (ID numbers, passport numbers, addresses, and contact details).
Details of all financial flows, including loans, donations, and distributions.
Taxable amounts distributed to or vested in beneficiaries.
Non-taxable income distributed.
Penalties for Non-Compliance:
Failure to submit the IT3(t) form on time or at all can result in administrative penalties. Therefore, it is crucial to adhere to the submission deadline and ensure all required information is accurately reported.
Trustees' Responsibilities
Trustees are responsible for ensuring that all required information is accurately reported and submitted to SARS. This includes maintaining detailed records of all financial transactions, distributions, and demographic information of beneficiaries. Trustees must also ensure that the IT3(t) form is submitted on time to avoid penalties.
Exemptions
It is important to note that Employment Share Incentive Scheme Trusts and Collective Investments Scheme Trusts are exempt from submitting the IT3(t) form. However, all other types of trusts are required to comply with this new submission requirement.
Additional Submission Requirement
Please be aware that the IT3(t) form submission is a separate and additional requirement over and above the annual trust tax return (ITR12T). This means that trustees must ensure both the IT3(t) form, and the trust tax return are submitted to SARS.
How We Can Assist You:
As your accountants, we are here to help you navigate these new requirements. Our team will:
Prepare the financial statements for your trust.
Gather and compile all necessary information for the IT3(t) submission.
Ensure that all distributions and financial flows are accurately disclosed.
Submit the IT3(t) form on your behalf before the deadline.
We understand that this is a significant amount of information to manage, but we are committed to making this process as smooth and efficient as possible for you. If you have any questions or need further assistance, please do not hesitate to contact us.
Thank you and please let us know if you have any questions.