Practical accounting insight: SARS has updated the trust income-tax return process for the 2026 tax season. While the final filing deadline for trusts is 22 January 2027, trustees and representatives should begin preparing now because the return will rely more heavily on pre-populated third-party information and additional trust-specific questions.
The changes are particularly relevant to trusts that receive investment income, distribute amounts to beneficiaries, hold business interests or need to confirm their classification and ownership information.
What has changed for the 2026 trust return?
According to SARS guidance on the 2026 trust income-tax season, income, vested amounts and certain expense information may be pre-populated from IT3(t) data where that information is available. Beneficiary schedules may also be pre-populated using IT3(t) information.
SARS is also introducing new containers to help determine and analyse the application of section 25B(4) to (6). These provisions can affect how trust income and amounts allocated to beneficiaries are treated for tax purposes. Trustees should therefore ensure that accounting records clearly distinguish between income received, expenses incurred, amounts vested and distributions actually made.
The updated process also includes enhanced questions relating to beneficial ownership, special-trust status and the trust’s legal classification. Tax practitioner contact details will be mandatory on the return.
Who is affected?
The changes affect trustees, appointed representative taxpayers and tax practitioners responsible for submitting ITR12T returns. They are also relevant to beneficiaries and businesses that transact with trusts, particularly where beneficiary allocations or trust distributions must be supported by accounting records.
Trusts that no longer meet the requirements for a special-trust classification may need to update their trust type before submitting the return. SARS states that this correction may currently require a branch visit and supporting documentation.
What should trustees check now?
- Confirm that the trust’s SARS registration details and appointed representative are correct.
- Reconcile bank, investment and accounting records for the relevant year of assessment.
- Check that IT3(t) information agrees with statements issued by financial institutions and other reporting entities.
- Prepare a clear schedule of income, expenses, vested amounts and beneficiary distributions.
- Review the trust deed and resolutions supporting distributions or allocations.
- Confirm whether the trust’s classification, including any special-trust status, remains accurate.
- Keep beneficial-ownership information and supporting documents current where required.
Why early preparation matters
Pre-populated information can reduce manual capturing, but it does not remove the trustee’s responsibility to review the return. Missing or incorrect third-party information may still require investigation before submission. A return that is accepted electronically is not necessarily a substitute for a properly supported accounting file.
SARS lists 22 January 2027 as the final submission date for the 2026 trust return. Trustees should use the time before then to resolve discrepancies, obtain missing statements and confirm beneficiary information. Businesses needing assistance with trust accounting, reconciliations or tax compliance can explore YFP’s accounting and advisory services.
