Compliance
Compliance Essentials for Trusts Under SARS 2026 Filing Updates
South Africa’s 2026 filing season introduces auto-assessment for some taxpayers and updated rules for trusts, losses, and temporary records. Trusts must adapt to meet new compliance standards.
By NomadicTax Research Team • 5-8 min read • September 15, 2026
## What’s new for trusts and losses in 2026
- Filing season runs: **19 September 2026 to 22 January 2027** for trusts. ([sars.gov.za](https://www.sars.gov.za/whats-new-at-sars/?utm_source=openai))
- Auto-assessment period for individuals: **1-12 July 2026**. Those who agree with the outcome need not file separately. ([sars.gov.za](https://www.sars.gov.za/whats-new-at-sars/?utm_source=openai))
- Provisional taxpayers with complex affairs must still file by **22 January 2027**. ([sars.gov.za](https://www.sars.gov.za/whats-new-at-sars/?utm_source=openai))
- 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](https://www.sars.gov.za/latest-news/changes-for-filing-season-2026/?utm_source=openai))
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## 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](https://www.sars.gov.za/whats-new-at-sars/?utm_source=openai))
- Gather beneficiary-vested amounts for IT3(t) return due **30 September 2026**. ([sars.gov.za](https://www.sars.gov.za/whats-new-at-sars/?utm_source=openai))
- 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](https://www.sars.gov.za/whats-new-at-sars/?utm_source=openai))
### 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](https://www.sars.gov.za/latest-news/changes-for-filing-season-2026/?utm_source=openai))
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## 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.
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## 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.