SARS has published a Public Notice under section 210 of the Tax Administration Act, 2011 (gazetted on 27 March 2026), enabling the imposition of administrative non-compliance penalties on trusts that fail to submit income tax returns when required.
In practical terms, this means that SARS can levy monthly fixed penalties where a trust has outstanding returns, with effect from the 2024 year of assessment. Importantly, the penalty is not immediate, it only being triggered once SARS issues a final demand, and the trust still fails to submit the relevant return within 21 business days.
Importantly, SARS has subsequently confirmed (on 7 April 2026) that the implementation of these penalties has been deferred to 4 May 2026. This follows stakeholder feedback that additional time was required due to the complexity of trust compliance. As such, no penalties will be imposed before this date, providing a limited window for trustees to regularise their affairs.
This change brings trusts in line with the automated penalty regime already applicable to individuals and companies and signals a clear shift by SARS toward stricter enforcement of trust compliance. What this means for trustees:
- Outstanding trust returns may now result in recurring monthly penalties;
- SARS is likely to actively monitor and enforce compliance; and
- There is a clear need to ensure that all historic and current returns are up to date.
We recommend that trustees review their current compliance position as soon as possible and address any outstanding filings to avoid penalties. For assistance, please reach out to your local Moore firm here.
