BO Register Requirements for a Trust in South Africa
Trustees must report the ownership of trusts to the High Court and the South African Revenue Service (SARS). SARS has released additional requirements for reporting on the 2023 annual trust tax returns. These new requirements aim to enhance transparency and compliance within the trust sector.
Here we provide an overview of the additional information now required to complete the tax return and highlight important submission due dates.
Trustees must provide additional information for trust tax returns, including the following details in the annual return.
- Trustees must reveal the information about the people who ultimately benefit from the trust's assets and income, increasing transparency.
- Annual financial statements: Trustees must include the trust’s annual financial statements as supporting documents, providing a comprehensive overview of the trust’s financial position and activities during the tax year as well as the distributions made to beneficiaries of the trust.
- Trust deed: A copy of the trust deed, which outlines the legal framework and provisions governing the trust, must be submitted to SARS.
- Letters of authority: Trustees need to provide letters of authority that confirms their appointment as trustees and their authority to act on behalf of the trust.
- Minutes of meetings and resolutions: Trustees must include minutes of meetings and resolutions that document significant decisions and actions taken by the trustees on behalf of the trust.
- Details of the ‘main’ trustee: Trustees are required to provide details of the ‘main’ trustee who will act as the registered representative to SARS. This trustee will be responsible for communication and correspondence with SARS on behalf of the trust.
- Confirmation of banking details: Trustees need to confirm the trust’s banking details, ensuring that accurate and up-to-date information is provided to SARS.
Submission due dates:
The submission due dates for trust tax returns are as follows:
Non-provisional taxpayer: Trusts that have no taxable income or engage in non-trade activities, or have distributed all income to beneficiaries, qualify as non-provisional taxpayers. The deadline for non-provisional taxpayer submissions is 23 October 2023. Provisional taxpayer: Trusts subject to normal tax on their taxable income fall under the category of provisional taxpayers.
Provisional taxpayer submissions must be made by 24 January 2024
It is clear that the administration of the trust will now include the reporting obligation of the beneficial owners of the trust being lodged with the master of the high court. The financial intelligence centre now enforces this beneficial ownership disclosure by the recent amendment of the trust property control act.
The recent greylisting of South Africa meant a drastic change was needed and this resulted in the need to disclose the natural persons who exercise effective control of entities.
Alignment with Master’s Office reporting
SARS has indicated that it will reconcile the demographic information provided in trust tax returns with the information reported to the Master’s Office. This alignment aims to identify any discrepancies and ensure consistency in reporting across institutions.
Third-party returns
SARS has also introduced legislation requiring trustees to submit third-party returns. These IT3(t) certificates must contain demographic and financial information consistent with what is reported to the Master’s Office and/or included in the annual financial statements. Trustees are required to submit these certificates by the end of May following the February tax year-end.
Simplifying reporting and statutory obligations
Given the complex and evolving reporting and statutory obligations faced by trustees, it is important to seek professional assistance to ensure adherence to all regulatory requirements.
Contact us today so that we can assist you with your BOP Register compliance.
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