Deadline for provisional taxpayers, including trusts, is Wednesday 24 January 2024

The deadline for individual taxpayers and trusts that are provisional taxpayers to file their income tax returns for the 2023 tax year, is Wednesday 24 January 2024. The 2023 year of assessment refers to the period between 01 March 2022 to 28 February 2023.

A provisional taxpayer is any person who receives income or to whom income accrues, other than remuneration. A Trust is included under the definition of a “person” in terms of the Income Tax Act, no.58 of 1962 and is therefore regarded as a taxpayer.

All Trusts are required to file a tax return annually, including those that are not economically active. A trustee is the representative taxpayer of a Trust and is liable to file on behalf of the Trust or appoint a registered tax practitioner to do so.

The South African Revenue Service (SARS) is taking a zero-tolerance approach to taxpayers not registering for the applicable tax, not filing tax returns, not making accurate declarations in their tax returns and failing to make payments due to SARS where applicable. Non-compliance with these obligations is a criminal offence and will attract penalties and interest.

As of the 2023 year of assessment, trustees are required to submit mandatory supporting documents during the filing process. These documents include amongst others, the Trust instrument, Annual Financial Statements, Letters of Authority, resolutions/minutes of trustee meetings and an organogram depicting the Beneficial Ownership of the Trust. Additionally, beneficiaries of Trusts are required to declare their income, including income derived from a Trust, in their personal income tax returns.

SARS has made it easy for taxpayers to comply through online filing solutions. The personal income tax return (ITR12) and Trust income tax return (ITR12T) may be obtained on eFiling while an appointment with a SARS branch may be made on the SARS website. Taxpayers are encouraged to refer to the SARS website for further information on their tax obligations, Trusts, Tax Filing Season 2023 and Provisional Tax.