South Africa’s greylisting led to the promulgation of Act No. 22 of 2022: General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act. This resulted in amendments to several other pieces of legislation throughout 2023.

After navigating all the changes introduced in 2023, third party reporting in terms of Section 26 of the Tax Administration Act, 2011, remains due. Also referred to as IT3(t) submission for trusts.

1) What is the new IT3(t) submission for trusts?

The IT3(t) submission is a requirement by the South African Revenue Service (SARS) for trusts to report any amount vested in a beneficiary during a specific tax year. It is a crucial part of ensuring compliance with tax regulations and providing transparency in trust transactions.

2) What does the submissions entail?

The IT3(t) submissions for trusts involve reporting distributions of capital and/or distribution of  various types of income, including interest, dividends, rental income, capital gains, and any other income generated by the trust. These submissions also require providing details of beneficiaries and their respective distributions received.

3) When are the submissions required?

The IT3(t) submissions for trusts will typically be due by the end of September each year. However, it is important to note that the exact deadline may vary, and it is advisable to consult with a tax professional or refer to SARS guidelines for the specific submission deadline.

4) How can we assist you with the submission?

At Sentinel International Advisory Services, we understand the complexities involved in trust taxation and compliance. Our team of experts is well-versed in trust-related matters and can provide you with comprehensive assistance throughout the IT3(t) submission process.

Our IT3(t) reporting services would be in addition to the current accounting, tax and regulatory services and will include the following:

• Preparation and submission of IT3(t) forms: Our experienced consultants will prepare the various IT3(t) forms and certificates on behalf of the trustees, ensuring that all relevant information is included, and that the submission is completed accurately and on time. This will be based on information (amounts and beneficiary detail) provided by the trustees where they resolved to distribute capital or income to beneficiaries.

• Compliance with tax regulations: Ensuring that your trust’s IT3(t) submission complies with the latest tax regulations and guidelines set by SARS. This helps to mitigate the risk of penalties.

In conclusion, the IT3(t) submission for trusts is an important requirement to ensure compliance with tax regulations. We understand that this process can be complex and time-consuming, which is why we are here to assist you every step of the way.

There has been changes with Charitable trusts as well and we will be shedding more light on this in our upcoming newsletters.

Please feel free to reach out to our team at Sentinel International Advisory Services for any questions or assistance you may need regarding the IT3(t) submissions for your trust. We are dedicated to providing you with the necessary expertise and support to ensure a successful submission.

Joint authorship

Chanel Schoeman, Werne Strydom and Jacori Uys.