The South African Revenue Service (SARS) can charge a trust between R250 and R16,000 a month, for every income tax return it fails to file. The top of that range is not the usual bill. The R16,000 amount applies only to a trust whose taxable income in the preceding year was above R50 million. Most trusts that run a family business or hold shares will sit in a much lower band. The penalty is still monthly, it is automatic once SARS has issued a final demand, and SARS says it applies to dormant trusts too.
What this means for a business owner
If you trade through a trust, or a trust holds your shares or property, the trustees are responsible for the return. According to SARS’s 7 September 2026 media release, the filing window for the 2026 trust return (ITR12T) opened on 19 September 2026 and closes on 22 January 2027, for both provisional and non-provisional trusts. SARS adds that this filing season “coincides with the introduction” of the penalty framework for trusts.
We could not open the IOL report of 19 October 2026 that prompted this story, because the site blocked our access. Its headline figure of R16,000 a month matches the ceiling in the law and on the SARS website, so we found no difference on the number. What a headline cannot show is that the amount depends on the trust’s income band.
The rule behind the number
Section 210 of the Tax Administration Act says SARS must impose a penalty where a person fails to meet an obligation that is listed in a public notice issued by the Commissioner. Section 211 then sets the amounts, based on the assessed loss or taxable income for the “preceding year”:
- Assessed loss, or taxable income of R0 to R250,000: R250 a month
- R250,001 to R500,000: R500
- R500,001 to R1 million: R1,000
- R1,000,001 to R5 million: R2,000
- R5,000,001 to R10 million: R4,000
- R10,000,001 to R50 million: R8,000
- Above R50 million: R16,000
If the trust’s taxable income for the preceding year is unknown, or it was not a taxpayer then, section 211(4) lets SARS apply the R250 band or estimate the income from available information. If the real figure later puts the trust in another band, the penalty is adjusted back to the date it was imposed.
SARS’s own page on administrative penalties describes the same range, “R250 up to R16 000 a month”. It does not set out the income table. That table is in the statute, so it is the figure to rely on.
What triggers it, and how long it runs
SARS’s trusts page records that a public notice issued on 27 March 2026 lists non-submission of trust income tax returns as non-compliance subject to a penalty. SARS says penalty assessment notices (AP34) were to be issued from 4 May 2026, and that the penalty applies to outstanding ITR12T returns for tax periods from 2024 onwards. The earlier step is a final demand. PKF South Africa reports that a trust then has 21 business days to file before the penalty applies.
Under section 211(2), the penalty amount increases by the same amount for each further month the failure continues. It is limited to 35 months from the date of assessment. If SARS has no current address and cannot deliver the assessment, the limit is 47 months from the date of non-compliance. Some commentators quote 36 months, but the statute and the SARS page both say 35. Unpaid penalties can be collected through a third party such as an employer, according to SARS.
The start has not been smooth. SARS’s trusts page shows the first penalties were deferred to 4 May 2026. Daily Investor reports that SARS later withdrew final demands and cancelled penalties issued earlier. It quotes Tax Consulting South Africa’s Sidney Fletcher, who warned that this was a temporary pause and not an exemption. New final demands were to follow, so check whether one has reached you.
Dormant trusts and the ownership records
A trust with no income still files. SARS’s release says passive or “dormant” assets, such as a holiday home, do not relieve a trust of the duty to disclose assets, liabilities, income and expenditure. It adds that nil returns and assessed-loss positions are a focus area this season and must be backed by the trust’s records.
The return is tied to beneficial-ownership information. SARS’s September 2026 tax digest lists beneficial-ownership documents among the supporting documents for trusts, together with the trust instrument, financial statements, Letters of Authority, minutes and resolutions. SARS also says a trust must register for income tax within 21 days of registering with the Master of the High Court. Moonstone reports SARS confirmed to it that the period is 21 business days. Deregistering with the Master does not automatically deregister the trust with SARS.
CIPC’s beneficial-ownership regime is aimed at companies. We did not find a CIPC annual return duty for trusts. If your trust owns shares in a company, that company has its own CIPC filing, which we cover in our report on CIPC beneficial ownership and deregistration.
Asking for remission, and what to do now
SARS says a request for remission (RFR) can be submitted through eFiling or at a branch, and the taxpayer must give reasons for the non-compliance. The objection route cannot be used before an RFR has been submitted and considered. SARS advises filing the outstanding return whether or not you agree with the penalty, because that stops further penalties. PKF says remission can only be requested once the non-compliance has been remedied.
- List every trust you act for or benefit from, including inactive ones.
- Confirm each is registered with SARS and has no outstanding ITR12T from 2024 onwards.
- Check your eFiling and post for final demands or AP34 notices.
- File before 22 January 2027, with the supporting documents, and make sure the trustees’ details match the Master’s records.
