SARS Trust Tax Penalties Start 4 May 2026: What Every Trustee Must Do Now
SARS starts issuing trust tax penalties from 4 May 2026
From 4 May 2026, the South African Revenue Service will begin issuing administrative non-compliance penalty notices to trusts that have not submitted their income tax returns. The penalty assessment notice — called an AP34 — will reflect every outstanding ITR12T return, the tax periods involved, and the steps required to stop the penalties from recurring. If you are a trustee and you still have outstanding returns for the 2024 or 2025 years of assessment, you are in the line of fire.
SARS originally planned to impose these penalties earlier. Following public consultation, the Commissioner approved a two-month deferral — the concession trustees asked for, citing the complexity of trust tax obligations. That window closes on 4 May 2026. After that date, no further grace applies.
Why SARS is targeting trusts now
This has been building since February 2026. On 9 February 2026, SARS issued final demands to trusts that had not filed annual income tax returns for the 2024 and 2025 years of assessment. On 27 March 2026, SARS published a public notice formally listing non-submission of trust income tax returns as an incidence of non-compliance subject to administrative penalties under section 211 of the Tax Administration Act, 2011. On 2 April 2026, SARS confirmed the AP34 penalty assessment process. On 7 April 2026, the two-month deferral to 4 May 2026 was announced.
The message from every update has been the same: get your returns in. SARS is not signalling further leniency. It is signalling that the process is fully operational and penalties are automatic once the deferral period expires.
Who this affects — and the obligation is broader than most trustees realise
Every registered resident trust in South Africa — without exception — must submit an annual income tax return. This applies whether the trust is economically active or dormant. If your trust has not traded, distributed income, or held assets in a given year, you still need to file. SARS confirmed this obligation in its February 2026 communication and repeated it in April 2026.
Certain qualifying non-resident trusts also fall under this obligation. If a resident trust has distributed funds to a non-resident trust, there are additional compliance considerations that SARS expects to be addressed.
The responsibility for all of this rests exclusively with the trustees — not the trust's accountant by default, not the trust's beneficiaries, and not SARS itself. SARS has been explicit: trustees bear sole responsibility for ensuring that all trust information on the SARS Registration, Amendments and Verification (RAV) system is accurate and current.
What the penalties actually look like
SARS administers these under section 211 of the Tax Administration Act, 2011. Administrative non-compliance penalties are designed to recur monthly until the underlying non-compliance is corrected. That means a trust that ignores an AP34 notice does not receive a once-off penalty — the penalty compounds month after month until the outstanding returns are submitted.
The AP34 notice will specify exactly which tax periods have outstanding returns and what corrective action is required. Trustees who believe a penalty has been imposed incorrectly can submit a request for remission via eFiling. SARS has published a guide and a step-by-step video specifically for trust remission requests on eFiling. If the penalty amount is disputed, trustees should follow the dispute process set out in the updated Guide to Submit a Dispute via eFiling — the previous guide titled 'How to Dispute Administrative Penalties via eFiling' has been incorporated into that updated version.
What to do before 4 May 2026
The steps are straightforward, but each one takes time to complete — especially if returns have not been filed for multiple years or if the trust's tax representative details are outdated on the RAV system.
Step 1: Establish which returns are outstanding. Log into SARS eFiling and check which ITR12T returns have not been submitted for the 2024 tax period onwards. If you do not have eFiling access set up for the trust, this needs to be resolved first.
Step 2: Update the RAV system. If the trust's registered details — banking details, representative taxpayer, contact information — are out of date, update them now. Outdated details can delay correspondence and create additional compliance flags. Trustees bear sole responsibility for this under SARS rules.
Step 3: Submit all outstanding ITR12T returns. The ITR12T is available on eFiling or can be captured at a SARS branch by appointment. Posting a return is no longer an option — SARS will reject trust returns received by post. If you need an appointment at a branch, book through the online booking system on the SARS website.
Step 4: Settle any outstanding tax liabilities. Filing a return does not automatically resolve an outstanding liability. Once returns are submitted, check whether any tax is owed and arrange payment to avoid interest and further penalties.
Step 5: If the trust has been deregistered elsewhere, initiate the SARS deregistration process. If a trust has been deregistered with its regulatory authority (such as the Master of the High Court) or no longer meets the requirements to remain registered, SARS still holds it on the tax register until a formal deregistration request is completed. SARS will not automatically close the file. Before requesting deregistration, the trust must submit all outstanding returns, settle all outstanding liabilities, and provide supporting documentation confirming the trust's termination. Requests can be submitted at a SARS branch (by appointment) or via email to the SARS trust deregistration address listed on the SARS website.
Check your own Tax Compliance Status on SARS eFiling
SARS eFiling gives registered taxpayers access to their Tax Compliance Status (TCS). Trustees should check the trust's TCS pin directly on eFiling to confirm whether outstanding returns or liabilities are flagged. This is the authoritative source — not a third-party estimate. If the TCS reflects non-compliance, that is the signal to act before 4 May 2026.
If the trust's eFiling profile is not set up, or if the representative taxpayer has changed and access has not been transferred, a registered tax practitioner can assist with resolving access issues and submitting the outstanding returns on the trust's behalf.
Deregistration is not automatic — and ignoring it creates ongoing penalties
One of the less obvious traps is the assumption that a trust which has wound down simply drops off the SARS register. It does not. Until a formal deregistration process is completed with SARS, the trust remains a registered taxpayer with all associated filing obligations. Every year that passes without a return is another year of potential penalties.
SARS has made clear that the trust tax register needs to be accurate, and that trustees — not SARS — are responsible for initiating deregistration for trusts that meet the criteria. If you are a trustee of a trust that was terminated, dissolved, or deregistered with the Master's office at any point, confirm whether the SARS deregistration process was formally completed. If it was not, outstanding ITR12T returns and a deregistration request both need to be submitted before the penalties start accumulating.
Need help navigating trust tax compliance?
Trust tax compliance in South Africa involves the Master of the High Court, SARS eFiling, the ITR12T return, the RAV system, beneficial ownership registers, and in many cases multiple tax periods of outstanding work. Getting it sorted before 4 May 2026 is achievable — but it requires a registered tax practitioner who works with trusts, not a general approach.
ClearComply connects South African business owners and trustees with accountants and tax specialists who handle exactly this. If you have outstanding trust returns, need to deregister a trust with SARS, or are not sure where your trust's tax affairs stand, tell us what you need and we'll connect you with the right specialist. No obligation, no guesswork — just a direct introduction to someone who can help you resolve this before the penalties land.