For the 2024 year of assessment, SARS has confirmed that trust beneficiary income tax returns will not be pre-populated with IT3(t) data. The IT3(t) data received by SARS for 2024 will be used exclusively for testing and risk identification purposes. Consequently, trust beneficiaries will need to rely on trustees to provide details of their 2024 trust earnings for inclusion in their personal income tax returns. It is important to note that the submission deadlines for 2024 income tax returns for trust beneficiaries, especially non-provisional taxpayers, remain unchanged despite the change in the trust tax filing season.
This announcement by SARS underscores SARS’ focus on trust beneficiaries and highlights the importance of trustees ensuring beneficiaries are informed about their trust earnings. Effective communication between trustees (or their representatives) and trust beneficiaries is crucial to ensure timely and accurate submission of beneficiary personal income tax returns.
Key Takeways:
- The delay in the 2024 tax filing season for trusts, now starting 16 September 2024, is a one-time adjustment applicable solely to the 2024 filing season. Next year, the 2025 trust tax filing season is anticipated to return to its usual start date of 1 July.
- The 2024 IT3(t) data received by SARS through trust IT3(t) submissions will be utilised by SARS solely for testing and risk assessment purposes.
- Consequently, SARS will not automatically populate IT3(t) certificates on the 2024 income tax returns of trust beneficiaries.
- Trust beneficiaries will continue to rely on trustees to provide them with details of trust income earned for inclusion in their 2024 personal income tax returns.
This year is crucial for trusts and their beneficiaries as SARS increases efforts to ensure tax compliance. Trustees must maintain clear communication with beneficiaries to keep them well-informed about their trust earnings, ensuring timely and accurate submission of their personal tax returns.
