Make a payment
Trusts and estates Nga Kaitiaki me nga Panga Tuku Iho

How the trust's income is taxed

The tax on a trust's trustee income is calculated at a flat rate of 33 cents in the dollar for all three different types of trust. Beneficiaries who are New Zealand residents are liable for New Zealand income tax on all their income, from any source in the world. Beneficiary income they receive from any trust will be taxable in New Zealand, at their normal income tax rates.

Special rules for beneficiaries who are children

Special rules apply for children under 16 who receive beneficiary income.

Tax on beneficiary income

New Zealand residents are taxed on their worldwide beneficiary income. Non-residents must pay tax on New Zealand sourced beneficiary income. Provisional tax is payable if the residual income tax is $2,500.00 or more.

Tax on trustee income

Explains the general rule on when the trustee is liable for New Zealand income tax, exceptions to this general rule, settlor liablility, and provisional tax obligations.