SARS Gives Trusts Extra Time to File Tax Returns
The South African Revenue Service (SARS) has announced that it will start charging administrative penalties on trusts that do not file their income tax returns beginning on May 4, 2026. This date was pushed back after trustees asked for more time to sort out their tax affairs.
Why the Delay?
During a consultation process, many trustees and their advisors told SARS that trust tax compliance can be complicated. They requested additional time to:
- File any outstanding tax returns
- Pay taxes that are still owed
- Update trust information with SARS
SARS listened and approved a two‑month extension, moving the penalty start date from the original date to May 4, 2026—the first business day in May.
What Happens After May 4 2026?
If a trust has not filed its returns or settled its tax liabilities by that date, SARS will impose administrative penalties for each month of non‑compliance. The penalties will continue to accrue until the trust fulfills all outstanding obligations.
Steps to Stay Compliant
File Outstanding Tax Returns
Gather all financial records for the trust and submit any missing income tax returns to SARS as soon as possible.
Pay Any Tax Owed
Calculate the total tax due, including interest, and make the payment before the penalty deadline.
Deregister If Needed
If the trust has been deregistered by its regulator or no longer meets registration requirements (applies only to non‑resident trusts), trustees must:
- File all outstanding tax returns
- Settle any remaining tax liabilities
- Provide SARS with documentation confirming the trust’s termination
- Apply for income tax deregistration only after the above steps are complete
What Trustees Should Do Now
Use the extra months to:
- Review the trust’s tax history
- Contact a tax professional if the process feels confusing
- Submit all required returns and payments
- Keep copies of every filing and payment receipt for future reference
Taking action now will help avoid penalties and keep the trust in good standing with SARS.
Conclusion
SARS has given trustees a valuable window to get their tax affairs in order before administrative penalties kick in on May 4, 2026. By filing outstanding returns, paying owed taxes, and completing any necessary deregistration steps, trusts can stay compliant and avoid unnecessary costs. Proactive management today will save headaches tomorrow.
