Partnership IT3(BO) to Solve Filing Nightmare
This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.
You have a partnership client. Filing season opens. Every partner has to list every other partner on their ITR12. Names, ID numbers, tax reference numbers, profit-sharing percentages. For a 10-partner firm, that is 10 people each capturing 9 sets of details. Manually. Every year.
During the 2024 filing season, SARS required each partner to declare all other partners' details on their personal ITR12. The requirement came from South Africa's anti-money laundering obligations under the General Laws Amendment Act 22 of 2022.
While there was good intent behind the initiative, it resulted in a painful execution. The admin burden fell on every partner individually, and tax practitioners were left chasing details and fixing errors across multiple returns.
The good news is that SARS proposed new fixes to address these issues. We will look at these fixes in more detail.
The Fix: IT3(BO)
SARS has launched a single eFiling form called the Beneficial Owner Register for Partnership, or IT3(BO). One person submits on behalf of the whole partnership. Everyone else uses a number. Here is how it works:
One nominated representative logs into eFiling, registers the partnership, and captures all partners' details on the IT3(BO) form.
SARS issues a unique IT3(BO) number and notifies the representative and each partner.
Each partner uses only that unique number on their ITR12. No more capturing other partners' details individually.
This is effective from the 2026 tax year. If the IT3(BO) is not submitted before partners start filing, SARS will reject the ITR12.
What Practitioners Need to Know
Find the form on eFiling under Returns > Beneficial Owner Register > IT3(BO). Part A captures the partnership and representative details. Part B captures each partner's details, entity type, and profit-sharing percentage. No supporting documents are required.
The form must be submitted every year, even if nothing has changed. There is no hard deadline, but it must be done before any partner files their ITR12.
The IT3(BO) applies to any formal partnership, including rental income partnerships between individuals. A husband and wife sharing rental income in community of property are excluded. SARS will issue further guidance on rental co-ownership. Make sure the right representative is set up on eFiling before you start.
Action List
Identify all partnership clients.
Nominate the representative for each and confirm they are set up on eFiling.
Collect full partner details: ID number, tax reference number, email, cell, and profit-sharing percentage.
Complete and submit the IT3(BO) on eFiling before filing season opens.
Share the unique IT3(BO) number with all partners once SARS issues it.
Set a reminder to resubmit the IT3(BO) every year.
Miss the number. Miss the filing. Get this done before filing season opens.