45% Tax Rate Warning
Trusts are taxed at the highest marginal rate (45%) from the first Rand of earning. Without a solid distribution strategy (vesting income to beneficiaries), your trust becomes a tax trap. We structure this correctly.
- Registration of New Trusts for Income Tax
- Submission of Annual ITR12T Trust Returns
- Advice on Vesting vs Retaining Income
- Trustee Resolutions & Minutes
- Section 7C (Low interest loan) calculations
Core Trust Services
Handling the unique requirements of the ITR12T return.
Registration
Obtaining an Income Tax number for new trusts using the Letters of Authority.
Compliance
Filing the extensive annual return which now demands 3rd party data reporting on all distributions to beneficiaries.
Estate Planning
Ensuring the trust actually serves its purpose of protecting assets from estate duty and creditors.
Compliance Workflow
Deed Analysis
We review your Trust Deed and Letters of Authority to understand the beneficiaries and mandate.
SARS Registration
All trusts must register for tax immediately. We submit the IT77TR to get your Tax Reference Number.
Annual Vesting
Before Feb year-end, Trustees must resolve whether to distribute income (taxed in beneficiary hands) or keep it (taxed in trust at 45%).
Filing
We submit the ITR12T return, disclosing all assets, liabilities, and beneficiary distributions to SARS.
Who Needs This?
The Family Trust
Holding property or investments for children. Needs careful management of Section 7C deemed interest on loans.
The Trading Trust
Running a business through a trust. High tax rate (45%) requires smart distribution strategies to be efficient.
The Dormant Trust
Trust exists but has no activity. Still requires a 'Nil' return every year to avoid administrative penalties.
How We Work
We believe good accounting starts with structure and consistency. Our approach is designed to give business owners clarity without unnecessary complexity.