In South Africa, family trusts are taxed at a flat rate of 45% on income generated during a tax year. When assets are transferred into a family trust, donations tax may be applicable if the transfer is deemed a donation. Donations tax is currently set at a rate of 20% and is levied on the value of the asset transferred. However, certain exemptions and thresholds exist, such as the annual donations tax exemption of ZAR 100,000 per person.

Every trust in South Africa has to register as a taxpayer in terms of the Income Tax Act. In terms of the recent amendments, the South African Revenue Service (SARS) is one of the entities given access to the Master’s portal.