NEW THIRD-PARTY DATA SUBMISSION REQUIREMENT FOR S18A INSTITUTIONS AND TRUSTS
According to the Public Notice 3631 published in Government Gazette No. 48867 on 30 June 2023, all approved Section 18A institutions will be required to submit IT3(d) data with effect from May 2024 for the 2023/2024 year of assessment (01 March 2023 to 28 February 2024). Under the same publication all Trusts will be required to submit IT3(t) third-party information. This means that Tax exempt (EI) Trusts that are approved Section 18A institutions, will be required to submit both the IT3(d) and IT3(t) data to SARS.
The IT3(d) and IT3(t) information required to be declared includes:
- All amounts vested in beneficiaries including income (nett of expenditure), capital gains and capital amounts.
- S18A receipts issued to donors.
Third-Party Data Submissions by Trusts that are Tax Exempt Institutions
According to the Public Notice 3631 published in Government Gazette No. 48867 on 30 June 2023, all Trusts will be required to submit third-party information (IT3(t) – returns) on all amounts vested in beneficiaries including income (nett of expenditure), capital gains and capital amounts. Due to their philanthropic and altruistic nature, tax exempt (EI) Trusts are established to benefit the public at large. Therefore, these Trusts do not have the type of beneficiaries envisaged with the submission of IT3(t) returns i.e., beneficiaries of the Trust, as per the Trust instrument, and who will benefit from the income or assets of the Trust.
However, certain EI Trusts have other organisations listed as beneficiaries in their Trust instruments to whom distributions will be made on a periodic basis or as per the discretion of the trustees. Typical instances are where a conduit public benefit organisation (PBO) provides funding to one or more public benefit organisations as per the stipulations in the Trust instrument. These Trusts will also be required to submit IT3(t) third party returns for the year of assessment ending on the last day of February 2024.
EI Trusts that are approved Section 18A institutions, will be required to submit both the IT3(d) and IT3(t) data to SARS.
Should you require further clarification, please do not hesitate to contact us at taxca@sdkca.co.za.
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