The South African Revenue Service (SARS) now requires trustees to submit an IT3(t) return to report all allocations, distributions, and vestings made to trust beneficiaries during the tax year.

What is the IT3(t)?

The IT3(t) is a mandatory third-party data return. Similar to how banks submit IT3(b) certificates, the IT3(t) allows SARS to track trust distributions directly and pre-populate beneficiaries’ individual tax returns (ITR12).

What information must be reported?

Trustees must submit detailed records for each beneficiary, including:

• Vested income & capital gains: Interest, dividends, trading income, and capital gains allocated.
• Capital & assets: Any capital or assets vested during the tax year.
• Donor details: Information relevant to Section 7 deeming provisions and Section 7C loan accounts.
• Beneficiary data: Full personal details, verified tax reference numbers, and IDs.

Key action steps for trustees:

1. Verify beneficiary details: Ensure all tax reference numbers and personal data are accurate and up-to-date.
2. Review resolutions: Ensure all trustee resolutions allocating income or capital are formally executed within the relevant tax year.
3. Reconcile accounting records: Align trust financial statements, resolutions, and IT3(t) submissions before filing to avoid SARS audits.

Need help with your trust tax compliance? At PRN Advisory & Tax Services, we assist trustees with IT3(t) submissions, trust tax returns (ITR12T), and regulatory compliance. Contact us today.