Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Trusts

HC 11: Foreign trusts

You could also call this:

“Rules for trusts set up by people living outside New Zealand”

A foreign trust is a special kind of trust. It’s called a foreign trust if no one who set up the trust (called a settlor) lives in New Zealand during a certain time period. This period starts on the later of two dates: either 17 December 1987 or the date when someone first put money or property into the trust. The period ends at the moment you’re looking at the trust. So, if at any point during this time someone who set up the trust lived in New Zealand, it’s not a foreign trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517277.

Topics:

Money and consumer rights > Taxes

HC 10: Complying trusts, or

“Trusts that follow strict income and tax rules”

HC 12: Non-complying trusts, or

“Definition and classification of trusts that don't meet specific legal requirements”

Part H Taxation of certain entities
Trusts

HC 11Foreign trusts

A trust is a foreign trust at a moment in time if no settlor is resident in New Zealand at any time in the period that—
starts on the later of 17 December 1987 and the date on which a settlement was first made on the trust; and
ends with the moment in time.

Compare

2004 No 35 s OB 1 foreign trust

Notes

Section HC 11: amended, on 21 February 2017, by section 5(a) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
Section HC 11(b): amended, on 21 February 2017, by section 5(b) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).