Trusts are included in the definition of a “person” in terms of the Income Tax Act, 1962 (ITA), and as such the trustees or representative taxpayers have a responsibility to register all trusts for income tax purposes. Trusts that are required to register include all local trusts, non-resident trusts that are effectively managed in the Republic of South Africa as well as non-resident trusts that derive income from a South African source.

The representative taxpayers of trusts are the trustees of a trust, but the responsibility to submit the tax return may be conferred on a specific trustee or a tax practitioner. Currently a trust, whether active or dormant, must submit an income tax return on an annual basis . Representative taxpayers of trusts are reminded of the availability of the Voluntary Disclosure Programme (VDP) subject to the requirements thereof, should a trust not be registered for income tax purposes. The representative taxpayers of trusts or their representatives are advised to ensure that all outstanding income tax returns are submitted without delay to avoid further penalties and interest.

Should you require clarification of the tax status of your Trust please do not hesitate to contact us in this regard.