With tax filing season drawing closer, the South African Revenue Service (SARS) has introduced changes to make it easier for taxpayers who are in a partnership to declare their partners’ details on their annual income tax returns, in line with the beneficial-owner regulations.
Sidney Fletcher
Senior Manager: Tax Compliance
On 22 April 2026, SARS formally announced the launch of a single eFiling form, the Beneficial Owner Register IT3(BO), which a designated partnership representative must use annually to register, fill out, and submit all partners’ information for the partnership.
Once submitted, SARS will issue an IT3(BO) unique number, which is the only number that partners will use to declare partnership details on the annual Income Tax Return (ITR12). This removes the need for all partners to each capture detailed information such as personal data, physical addresses etc. This will allow SARS to prepopulate individual tax returns in subsequent years.
Taxpayers in partnerships should not delay in nominating a representative to access the IT3(BO) form on eFiling and complete the details of all partners in preparation for tax filing season.
Why the Change
In its notice SARS says during the 2024 Filing Season, it implemented a new requirement for taxpayers in partnership to declare the details of his or her partners on the ITR12. This declaration is required by the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022.
However, this created a significant administrative challenge as each partner had to provide details about every other partner, excluding themselves, on their tax returns.
This added layer announced now, will make reporting on returns easier because individual partners will no longer need to enter all partner details on the ITR12. At the same time, it shows that SARS is taking beneficial ownership details on tax returns very seriously — not just for trust, but also partnerships.
Annual Submission of the Form Required
It is important to note that the IT3(BO) form must be submitted annually by the designated representative. Each partner can use just the unique IT3(BO) number to declare partner details on the ITR12.
Tax practitioners say that this initiative forms part of SARS’ broader use of third-party data to verify income declarations and improve tax compliance.
What is a Partnership for Tax Purposes?
Partnerships can take many forms, but in essence they involve two or more partners splitting the income from a business, a trade or sale of an asset, for example a married couple sharing the income from selling their home.
SARS defines it as follows: “A partnership (or unincorporated joint venture) is the relationship existing between two or more persons who join together to carry out a trade, a business or a profession. A partnership is also not a separate legal person or taxpayer. Each partner is taxed on his or her share of the partnership profits.”
Why Beneficial Ownership Matters
The SARS External Guide to the BO Register for Partnerships, states:
Identifying the Beneficial Owner is essential for effective tax administration as it ensures transparency and accountability in financial transactions. It enables tax authorities to accurately assess tax liabilities, prevent tax evasion, and support investigations into money laundering and other illicit activities. Beneficial Owner information also strengthens international cooperation and information exchange, helping jurisdictions address cross-border tax evasion and ensure taxpayers meet their obligations.
According to the Guide the IT3(BO) form has been developed to, among others, reduce the administrative burden on partners who previously captured partner details individually on the ITR12, and to establish reliable beneficial owner data to support compliance and downstream processing.
How the IT3(BO) Process Works
The introduction of the IT3(BO) as a single eFiling form, is a practical step toward reducing administrative complexity for taxpayers in partnerships, while reinforcing SARS’ focus on transparency and regulatory compliance.
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