Trusts

Question 1

How is Beneficiary income taxed?

Answer 1

At the beneficiary tax rate

Question 2

When are payments required?

Answer 2

Later of:
- Six months after end of income year
AND
Earlier of:
- Date trust income tax return filed
- Date trust income tax return must be filed

Question 3

What is trustee income?

Answer 3

total trust income LESS amounts paid to beneficiaries

Question 4

Taxation of a minor beneficiary?

Answer 4

Trustee liable for beneficiaries income if a minor (younger than 16) and trust income greater than $1000

Question 5

When is foreign-sourced trustee income?

Answer 5

Settlor resident in NZ and not transitional

The trustee is resident in NZ and settlor died in NZ

Question 6

What is foreign-sourced trustee exempt income

Answer 6

When no settlor in NZ during the income year
Excludes
- Trusts where settlor died in NZ

Question 7

Who is a settlor?

Answer 7

• Someone that transfers value to trust, for benefit of trust, on terms of the trust
• 10%> shareholder in company that settled a trust
• the settlor of trust that has been resettled

Question 8

What is a complying trust?

Answer 8

All trustee income taxed in NZ
Elected for trust to be taxed as NZ resident
All tax liabilities Meet since settled

Question 9

What is a Foreign Trust?

Answer 9

From the date of settlement, no settlor has been resident in NZ

Question 10

What is the tax rate on retained income?

Answer 10

All types = 33%

Question 11

What is the tax on income distributed?

Answer 11

All types = Marginal Tax rate

Question 12

What is the tax on accumulated income distributed?

Answer 12

Complying = No Tax
Foreign = Marginal
Non-Complying = 45%

Question 13

What is the tax rate on capital gains distributed?

Answer 13

Complying = No Tax
Foreign = No Tax 
Non-Complyin = 45%

Question 14

Tax on corpus Distributed?

Answer 14

All types = No Tax