New IT3(t) Submission Requirements for Trusts
/SARS has introduced updated reporting requirements for trusts that significantly increase the compliance and administrative responsibilities of trustees. These IT3(t) submission requirements apply to all trusts in South Africa and carry penalties for non-compliance. Here is what you need to know.
What is the IT3(t) Return for Trusts?
An IT3(t) is a third-party data return that trustees in South Africa are required to submit to SARS each year. It discloses the amounts distributed, vested, or attributed to beneficiaries, donors, and funders of a trust. SARS uses this information to pre-populate the income tax returns of beneficiaries and to verify that all income and capital gains from the trust are correctly declared and taxed. The IT3(t) is a separate legal obligation from the annual trust income tax return (ITR12T); both must be submitted.
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:
For the 2025 year of assessment, IT3(t) returns must be submitted to SARS by 30 September 2025. Trust income tax returns (ITR12T) for the same period can be filed from 20 September 2025 to 19 January 2026. Both submissions are mandatory.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 for IT3(t) Submissions
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 From IT3(t) Submissions
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.
IT3(t) Versus the Annual Trust Tax Return
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 Help with Your IT3(t) Submission
As your registered tax practitioners and accounting team, we are here to help you navigate these 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, and submit the IT3(t) form on your behalf before the SARS deadline.
If you have any questions about your trust tax compliance or SARS statutory services, please get in touch with us.
Navigating SARS trust compliance can be complex. As registered tax practitioners, Anlo Financial Solutions prepares IT3(t) returns, compiles trust financial statements, and submits them on behalf of trustees before the SARS deadline. Contact us for a free consultation.
FAQs About IT3(t) Submissions
Who Must Submit the IT3(t) Return?
All trusts in South Africa must submit an IT3(t) return, including dormant trusts. This includes family trusts, trading trusts, and any trust registered with the Master of the High Court. Employment Share Incentive Scheme Trusts and Collective Investment Scheme Trusts are exempt.
What is the IT3(t) Deadline For the 2025/2026 Tax Year?
For the 2025 year of assessment, the IT3(t) must be submitted to SARS by 30 September 2025. The annual trust income tax return (ITR12T) has a separate deadline and can be filed from 20 September 2025 to 19 January 2026.
What Happens If a Trust Does Not Submit the IT3(t)?
Failure to submit on time or submitting incorrect information can result in administrative penalties from SARS. SARS uses IT3(t) data to cross-reference beneficiary tax returns. Inconsistencies may trigger audits and reassessments. Trustees are personally and jointly liable for the trust's tax compliance.
Are Dormant Trusts Exempt From IT3(t) Submissions?
No. All trusts must comply, including dormant ones. SARS does not legally recognise dormant trust status for tax reporting purposes. Even a trust with no distributions or activity during the year must submit an IT3(t) and an annual trust tax return.
