TRUST COMPLIANCE IN SOUTH AFRICA: WHAT COMPANIES MUST KNOW IN 2025

South Africa’s trust compliance landscape has changed dramatically, with new deadlines, stricter enforcement, and evolving anti-money laundering (AML) requirements. Companies and trustees must stay informed and proactive to avoid penalties and reputational risk. Here’s a fact-checked, up-to-date guide for 2025, with references to all key deadlines and regulatory changes.

1. Beneficial Ownership: Ongoing Disclosure Obligations

Key Requirements:

• All trusts must maintain a register of beneficial owners, including founders, trustees, beneficiaries, and anyone exercising control over the trust.

• For companies (including those acting as trustees or related parties), the deadline for filing beneficial ownership information with the Companies and Intellectual Property Commission (CIPC) is now within 30 days of the company’s annual return anniversary date, or within 10 days of incorporation for new entities registered after 24 May 2023.

• Any changes to beneficial ownership must be reported to CIPC within 10 days of the change.

• Since 1 July 2024, CIPC systems enforce a “hard stop”—companies cannot file annual returns without first updating their beneficial ownership information for the calendar year.

• In January 2025, CIPC issued compliance notices to non-compliant entities, warning that continued non-compliance could result in administrative fines or deregistration.

Penalties:

• Failure to comply with beneficial ownership requirements can result in compliance notices, administrative fines, and ultimately deregistration by CIPC.

2. SARS Trust Tax Compliance: New Deadlines and Penalties

Registration and Returns:

• All trusts are required to register with SARS and file annual tax returns—even if the trust is not economically active.

• For the 2024 tax year (covering 1 March 2023 to 29 February 2024), the deadline for trusts to file their income tax returns (ITR12T) was 20 January 2025.

• For the 2025 tax year, the filing window for trusts is 21 July 2025 to 19 January 2026.

• Trustees are personally liable for the accuracy and honesty of these returns, regardless of whether a tax practitioner is used.

• SARS has announced that administrative penalties for late submission of trust tax returns will be enforced from mid-April 2025, with the possibility of retrospective penalties for past non-compliance.

Third-Party Data Reporting:

• Trusts must submit IT3(t) returns to SARS, detailing all amounts vested in beneficiaries, donors, and funders.

• SARS is increasing its use of third-party data and cross-checking to identify non-compliance and will penalize inaccurate or fraudulent returns.

3. Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF): Expanded Scope and Stricter Controls

Regulatory Updates:

• The draft AML/CTF Amendment Bill, published in December 2024, is set to further strengthen South Africa’s compliance framework and bring it in line with international standards.

• The bill introduces stricter requirements for risk management, enhanced due diligence for high-risk clients, and expanded regulatory powers for the Financial Intelligence Centre (FIC).

• Accountable institutions now include not only financial institutions but also legal firms, real estate agencies, and non-profit organisations, all of which must comply with robust AML/CTF processes.

Practical Impact:

• Trustees must disclose their capacity and the nature of trust property when dealing with accountable institutions.

• Failure to report suspicious transactions to the FIC within 15 business days is a criminal offence.

4. SARS Enforcement: "Project AmaBillions" and Compliance Drives

• SARS has launched a focused revenue recovery campaign, internally referred to as “Project AmaBillions,” aimed at collecting outstanding tax debt and closing compliance gaps, with trusts as a key focus area.

• SARS is recruiting hundreds of new employees to support this effort and is leveraging technology to track down unregistered or non-compliant trusts and individuals.

• Trustees and companies face personal and criminal liability for breaches of trust law, tax law, and AML/CTF regulations.

5. What Companies and Trustees Must Do Now

• Register all trusts with SARS and the Master of the High Court.

• Maintain and update a beneficial ownership register; file changes promptly with CIPC.

• File all required trust tax and IT3(t) returns accurately and on time, noting the new deadlines for 2025.

• Keep comprehensive, up-to-date financial and administrative records.

• Disclose trust status when dealing with accountable institutions.

• Implement robust AML/CTF compliance procedures and report suspicious transactions.

• Seek professional guidance to navigate complex requirements and avoid severe penalties.

Conclusion

The era of light-touch trust compliance in South Africa is over. Trustees and companies must embrace transparency, accuracy, and diligence to avoid harsh penalties and reputational damage. With enforcement escalating and regulations evolving, proactive compliance is not just best practice—it is essential for survival in 2025 and beyond.

At Compliance Hub Consulting, we help organisations navigate these evolving regulations with clarity and confidence. If your company or clients are involved in trusts, don’t wait for enforcement action—contact us today for expert guidance and compliance support.