Special report 39% trustee rate

Inland revenue has released a Special Report regarding the increased tax rate. The report outlines the new rules for trusts including:

• measures to mitigate over-taxation, including:
  • retaining the 33% rate for trusts with net income that does not exceed $10,000
  • carve outs for deceased estates
  • carve outs for trusts settled for disabled people, and
  • exclusions for energy consumer trusts and certain superannuation funds.
• the new rules that will tax beneficiary income derived by certain close companies at the 39% trustee tax rate.

References:

• Special Report: 39% Trustee Tax Rate
• Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Act