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SARS has added a condition to the Manual Letter of Compliance (MLOC) for resident trusts. From 16 October 2026, a resident trust must have Tax Compliance Status (TCS) in good standing before it presents an MLOC to an Authorised Dealer to transfer funds. SARS published the notice on 22 October 2026.
What changed
The MLOC that SARS issues now carries a new condition: the trust's TCS must be in good standing when the trust presents the letter to the Authorised Dealer.
Who it affects
Resident trusts that transfer funds through an Authorised Dealer using an MLOC, their trustees and their advisers.
What this means for accountants and finance professionals
The condition has applied since 16 October 2026. SARS's news notice is dated 22 October 2026.
A trust without TCS in good standing cannot use the MLOC for the transfer.
Trust returns (ITR12T) are due by 22 January 2027. A trust with outstanding returns may not have TCS in good standing.
Trustees planning international transfers should check the trust's compliance status before presenting the MLOC.
Key dates
What to do
Check the trust's TCS on eFiling before applying for or using an MLOC.
Resolve outstanding returns or debt first.
Review SARS's list of supporting documents for international transfers.
Sources: SARS notice, 22 October 2026, Supporting documents for international transfers, SARS trusts page
