THERE ARE two significant SARS changes in the past six months impacting South Africans (both local and anyone abroad) on trusts, which directly impacts the beneficiaries of a trust.
The first is the new IT3(t) reporting, which is the same rules under which your bank reports interest income and your medical aid reports medical aid tax information to SARS. The final Regulations on how trusts must report their distributions to trustees are expected to be formally announced in the coming months.
The second, more immediate and unexpected change, hits any beneficiary of trusts transferring money offshore. SARS implemented a new Approval for Inter-national Transfer Application (AIT) process, which replaces the previous Emigration and Foreign Investment Allowance applications.
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