Norrie & Daughters

Trust Taxation

Accounting services for clubs,societies & Not for profit Auckland

This section presents a general outline of the tax issues surrounding the taxing of trusts for informational purposes only, it is not intended to be an authoritive tax guide and should not be relied upon for tax purposes. For up to date tax advice please contact Norrie & Daughters.

For tax purposes trusts are divided into 3 categories:

  • Complying trusts;
  • Non-Complying Trusts;
  • Foreign Trusts
Trustee income includes investment income generated from the money or property settled on the trust, rental income or other trading income less the expenses incurred in generating that income. It is therefore possible for tax losses to be available for offsetting against future income.

Beneficiary income is income derived by the trust that is distributed or applied to the benefit of a beneficiary in the same income year that it was earned or within the earlier of 6 months after the end of the income tax year or when the trust or trustees file the tax return.

At the time of writing, trustee income is taxed at 33 cents in the dollar and beneficiary income is taxed at the beneficiary’s marginal income tax rate however, beneficiaries who are under 16 years of age and receive more than $1,000 in beneficiary income are taxed at 33 cents in the dollar.

Different tax rules apply to each type of trust category and trust can move between categories.
  • Non -resident settlors
  • Non-resident settlors becoming NZ resident
  • Resident settlor becoming non-resident
  • Foreign sourced income
  • Non-resident beneficiaries
  • Minor beneficiaries
  • Dividend and imputation tax credits
  • Forgiveness of debt
  • Trading trusts
  • GST
  • Income tax

The Benefits of Using Norrie & Daughters

Trusts taxation services Auckland

Experience

  • We can help you by providing tax advice on your trusts circumstances
  • We can help you by preparing and filing the trusts tax returns
  • We can help you in planning how to legally minimise trustee and beneficiary tax obligations
  • We can provide an independent trustee.
  • We can help with trust administration and accounting, providing the rigour necessary to ensure the trust is not declared a sham trust.

Service

  • As a boutique accounting firm, Norrie & Daughters has a unique, holistic approach to how we deliver our services that allows us to provide a bespoke service to business owners, managers, individuals, and decision-makers in many industry sectors. We know that one size certainly does not fit all in New Zealand’s dynamic business landscape.
  • At Norrie & Daughters all of our team’s experiences and credentials blend to create a wealth of knowledge, understanding and personality. We work as a team to achieve our goal of providing our clients with an entrepreneurial style and practical approach to delivering what you require.
  • Our client-centered approach is instilled in every aspect of our own firm’s culture at every level, from directors to the administrative support staff.
Trusts taxation services Auckland

To learn more about the services we offer to clients both in New Zealand and overseas Contact Us Today