Following the 2025 Budget Speech, the South African Revenue Service (SARS) has made it clear that compliance remains a top priority for the year ahead. With enhanced systems, advanced data analytics, and artificial intelligence, SARS is tightening its monitoring of Trusts and Non-Profit Organisations (NPOs) — particularly around IT3(d) and IT3(t) submissions.
These reports play a critical role in ensuring transparency and accountability within South Africa’s tax system — and delays or inaccuracies could have serious consequences for organisations and trustees.
Why IT3(d) and IT3(t) Matter More Than Ever
SARS is leveraging its data-driven systems to cross-reference taxpayer information and detect underreporting or inconsistencies. The focus is on strengthening tax integrity and identifying non-compliant or unregistered entities.
This proactive approach allows SARS to automate tax assessments and close the gap between what is owed and what is collected — particularly among Trusts and NPOs, which are now under closer scrutiny than ever before.
NPOs in Focus: The Importance of IT3(d) Reporting
If your organization is Section 18A-approved, you are required to submit IT3(d) forms to SARS. These forms detail all tax-deductible donation receipts issued to donors during the year.
This submission is more than just a compliance checkbox, it’s a safeguard for your organization’s credibility and donor trust. SARS uses the information to verify donor tax claims and maintain the integrity of the public benefit sector.
Failure to comply by 31 May 2025 may result in:
Loss of Section 18A status, making future donations non-deductible.
Audits and penalties for incorrect or missing submissions.
Loss of donor confidence, impacting your organization’s fundraising potential.
Accuracy from the start is key; incomplete or incorrect submissions can cause delays, penalties, and even reputational damage.
Trusts Under the Microscope: IT3(t) and Beneficial Ownership
Trusts are also required to submit IT3(t) reports annually, detailing income, capital gains, and distributions made to beneficiaries. The submission deadline is 30 September 2025.
SARS has also emphasized beneficial ownership transparency — meaning trustees must clearly disclose who ultimately benefits from the trust’s income or assets.
Trustees should take note of the following:
SARS is actively identifying and registering unregistered trusts using third-party data.
Trustees are personally and jointly liable for a trust’s tax compliance.
Penalties will be applied for non-submission or late submissions.
Even passive or inactive trusts must comply — no trust is considered “dormant” in SARS’s eyes.
A Data-Driven Future for Compliance
SARS’s compliance model is now technology-led, integrating data from IT3 submissions with third-party information such as payroll, banking, and investment systems.
This forms part of Project AmaBillions, SARS’s broader strategy to encourage voluntary compliance while strengthening enforcement. Those who fail to meet their obligations risk audits, penalties, and reputational damage.
Don’t Wait Until It’s Too Late
With submission deadlines quickly approaching, now is the time to ensure your organisation or trust is fully compliant. Early preparation prevents penalties, protects your reputation, and ensures transparency.
At Anovate Group of Companies, we specialise in helping Trusts and NPOs navigate compliance with ease. Our team of tax and accounting professionals ensures your IT3(d) and IT3(t) submissions are accurate, timely, and aligned with SARS’s latest requirements.
Let’s help you stay compliant and confident this tax season.
Contact Anovate today for professional assistance with your Trust or NPO compliance.
