Taxation of trusts
This interpretation statement explains the taxation of trusts under the trust rules in the Income Tax Act 2007. It updates and replaces IS 18/01.
The statement is a general guide as to how income derived by the trustees of a trust is taxed. It also explains the various compliance obligations imposed on settlors, trustees and beneficiaries under tax law.
It does not deal with the proposed change to the trustee tax rate and related measures contained in the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill. These will be explained in a Tax Information Bulletin after the legislation passes.