Tax & Accounting


Tax Rates

Trustees Income
The top tax rate applicable to trust income is 33%.This is generally called the trustees tax rate as is the rate payable when income is retained in a trust.

Beneficiaries Income
When income is earned by a trust and then paid to beneficiaries the tax rate that each beneficiary is paying is the rate that the income is taxed at.

Minors under the age of 16
The tax rate payable on income in to children under the age of 16 is taxed at 33% if the amount paid or allocated to them in any income year exceeds $1000.

Savings & Investment Tax rules

The Savings and Investment Tax rules that apply to offshore equity investments and NZ based managed funds mean that all trustees need to review the tax position in the trusts they are responsible for.

The PIE (Portfolio Investment Equity)and FDR (Fair Dividend Rate) tax regimes need to be understood by trustees and specialist advice is this area should be obtained from professionals who will have access to detailed research papers.

Trustees need to be aware of their fiduciary obligations in considering the tax rate they elect for the trust in relation to its investments.



Trustees have a responsibility to “account” for the transaction in a trust. This does not mean a full set of accounts needs to be prepared in every trust, however there are many circumstances where full accounts should be prepared. If the trust is a simple one with perhaps just the family home in it there is no need to prepare accounts.