What’s new for trusts and losses in 2026
- Filing season runs: 19 September 2026 to 22 January 2027 for trusts. (sars.gov.za)
- Auto-assessment period for individuals: 1-12 July 2026. Those who agree with the outcome need not file separately. (sars.gov.za)
- Provisional taxpayers with complex affairs must still file by 22 January 2027. (sars.gov.za)
- Loss ring-fencing under Section 20A has been modified: for years of assessment from 1 March 2026, ring-fencing applies if marginal tax rate ≥ 39%, not the previous max rate of 45%. (sars.gov.za)
What trusts need to do now
Document and prepare ahead of filing season
- Update trust deeds, income & expenditure statements, annual accounts. SARS requires these for ITR12T filings. (sars.gov.za)
- Gather beneficiary-vested amounts for IT3(t) return due 30 September 2026. (sars.gov.za)
- Review representative taxpayer status and ensure registrations are up to date. Any change in trustees or addresses must be reported within 21 business days. (sars.gov.za)
Understand the loss ring-fencing changes
- If your trust or business incurred losses under old rules, assess whether these losses were “ring fenced” under Section 20A. Now only applicable when marginal tax ≥ 39%.
- For assessments years before 1 March 2026, old rules apply; after that, the new threshold applies. Use this when forecasting or calculating deductions.
Auto-assessment: to file or not to fight
- If you receive an auto-assessment and agree, you may rest. If not, you still have the right to amend by the relevant filing deadline. For non-provisional individuals: 23 October 2026. For trusts & provisional taxpayers: 22 January 2027. (sars.gov.za)
Practical example
Example: A trust has trustees who weren’t aware of the new marginal rate condition and expected to ring-fence losses under old 45% rate rule. For the assessment year ending 31 August 2026, marginal rates applicable are 39%. Only losses incurred in that year and beyond may be ring-fenced under section 20A. Losses from prior years still subject to older rules.
The trustees should adjust their financials and tax computations accordingly.
Key takeaways
- Trusts must adhere to new deadlines and documentation requirements or risk late penalties.
- Loss treatment rules have changed—update forecasts and assess eligibility under the new 39% margin rate.
- Auto-assessment offers convenience—but always review it carefully.
- Early preparation prevents compliance failures and helps capture deductions fully.