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Registering as a Trust

All trusts must register with SARS for Income Tax, whether they are:

Resident or non-resident.

Active or passive.

Regardless of transactions or income.

How to Register for Income Tax

You can register a trust in one of the following ways:

  1. Online via the SARS Online Query system, submit the IT77TR – Application for registration of a Trust form and Trust supporting documents. https://www.sars.gov.za/wp-content/uploads/Ops/Forms/IT77TR-Application-for-registration-Trust-External-form.pdf
  2. In person at a SARS branch by appointment. Bring all required Trust supporting documents.

Note: Once a Trust is registered for Income Tax, the trustee will be required to annually submit an income tax return for the Trust.

Trust Types and Registration Numbers

During the registration process on eFiling registration, the following applies:

Non-resident (Foreign) Trusts and Collective Investment Schemes Trust (CIS) are able to register without the mandatory Trust registration number (as indicated on the Letter of Authority (LoA)).

The following Trust types will still be required to provide a Trust registration number:

  1. Inter vivo trusts,
  2. Testamentary Trusts,
  3. Estate CGT Trusts, and
  4. Special Trusts

An example of supporting documents to be provided IF YOU USE A TAX PRACTITIONER for registration of INTER VIVO TRUSTS is as follows:

  1. Copy of the Letters of Authority (issued by the Master of the High Court).
  2. Copy of the Trust Deed or Deed(s) of Amendment.
  3. Copy of one of the following documents of the trustees who will act as the main trustee and be registered as the representative taxpayer at SARS (also known as the Registered Representative):

3.1 SA Valid Identity Document;

3.2 SA Valid Driving Licence; or

3.3 SA Temporary Identity Document.

  1. Trustee resolution stipulating/confirming the appointment of the “Representative Taxpayer (e.g., Main Trustee)” of the Trust.
  2. Power of Attorney or Letter of Appointment indicating that the Tax Practitioner is mandated by the Trust to do the registration application.
  3. Copy of the Identity Document of the Tax Practitioner.
  4. Proof of the business address of the Trust.
  5. Proof of residential address of the representative taxpayer.
  6. Proof of residential address of the tax practitioner.
  7. IT77TR – Application for registration of a Trust form.

If the registration is done by a registered representative, i.e., the main trustee, the following documents must be submitted:

  1. Copy of the Letters of Authority (issued by the Master of the High Court).
  2. Copy of the Trust Deed or Deed(s) of Amendment.
  3. Copy of one of the following documents of the trustees who will act as the main trustee and be registered as the representative taxpayer at SARS (also known as the Registered Representative):

3.1 SA Valid Identity Document;

3.2 SA Valid Driving Licence; or

3.3 SA Temporary Identity Document.

  1. Trustee resolution stipulating/confirming the appointment of the “Representative Taxpayer (e.g., Main Trustee)” of the Trust.
  2. Proof of the business address of the Trust.
  3. Proof of residential address of the representative taxpayer.
  4. IT77TR – Application for registration of a Trust form.

If the registration is done as a “once-off mandate” authorised by the Trust, the following documents must be submitted:

  1. Copy of the Letters of Authority (issued by the Master of the High Court).
  2. Copy of the Trust Deed or Deed(s) of Amendment.
  3. Copy of one of the following documents of the trustee who will act as the main trustee and be registered as the representative taxpayer at SARS (also known as the Registered Representative):

3.1 SA Valid Identity Document;

3.2 SA Valid Driving Licence; or

3.3 SA Temporary Identity Document.

  1. Trustee resolution stipulating/confirming the appointment of the “Representative Taxpayer (e.g., Main Trustee)” of the Trust.
  2. Power of Attorney or Letter of Appointment indicating that you received the once-off mandate by the Trust to do the registration application.
  3. Copy of the identity document of the person who received the once-off mandate by the Trust to do the registration application.
  4. Proof of the business address of the Trust.
  5. Proof of residential address of the representative taxpayer.
  6. Proof of residential address of the person who received the once-off mandate by the Trust to do the registration application.
  7. IT77TR – Application for registration of a Trust form.

The above information is for INTER VIVO TRUSTS. Documentary requirements for other types of Trusts can be found on the link: https://www.sars.gov.za/businesses-and-employers/trusts/registering-as-a-trust/register-a-trust-supporting-documents/

Other Taxes a Trust May Need to Register for:

  1. Provisional Tax – When a trust meets the definition of a Provisional Taxpayer as per the Fourth Schedule to the Income Tax Act, the Trust must add “provisional tax” to its portfolio on eFiling. Refer to Provisional Tax for the necessary guidance.
  2. Employees’ Tax [Pay-As-You-Earn (PAYE)] – The trust must apply for registration as an employer within 21 business days of becoming an employer.
  3. Skills Development Levy (SDL) – Payable at 1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments).
  4. Unemployment Insurance Fund (UIF) – Payable at 1% of remuneration paid or payable during the month.
  5. Value-Added Tax (VAT) – The trust must register if an enterprise has taxable supplies, goods or services subject to VAT in excess of R1 million in any consecutive 12-month period. A trust making taxable supplies of less than R1 million may voluntarily apply to register for VAT (RECENTLY AMENDED TO R2.3 MILLION PER ANNUM).

A trust may also be liable for the following taxes:

Donations Tax – Donations tax is levied at a flat rate of 20% on the cumulative value of property donated not exceeding R30 million and at a rate of 25% on the cumulative value exceeding R30 million (sections 54 to 64 of the Income Tax Act, 1962).

Transfer Duty – Payable on a sliding scale based on the value of the property transferred.

Securities Transfer Tax (STT) – Levied on the transfer of a security at 0.25% of the taxable amount of the security.

A trust may be eligible to register as a tax-exempt organisation if certain requirements are met. Refer to Section 10(1)(cN) and Section 30 of the ITA.

Related Documents

ASPOA – Authority on Special Power of Attorney by Tax Practitioner – External Form

IT144 – Declaration by Donor – External form

IT44 – Extract of Income – External Form

IT77TR – Application for registration of a Trust – External form https://www.sars.gov.za/wp-content/uploads/Ops/Forms/IT77TR-Application-for-registration-Trust-External-form.pdf

RC02 – Application for Certificate of Residence for Persons other than Individuals – External Form

Rev16 – Claim for STT Refund – External form

SPPOA – Special Power of Attorney – External Form

TPPOA – Special Power of Attorney to Tax Practitioner – External Form

Helpful articles are available on the following links:

Trusts
Income tax return for Trusts – part 1
Income tax return for Trusts—part 2
Interest-free shareholder loans, interest-bearing loans and loans to Trusts