Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Trusts

HC 20: Distributions from complying trusts

You could also call this:

“Money from complying trusts is usually tax-free”

If you get money from a complying trust, you don’t have to pay tax on it. This is called exempt income. For this rule to apply, the money can’t be from a community trust, and it can’t be what’s called beneficiary income. The law that says this is exempt is in section CW 53. Remember, this only works for money you get in a specific tax year.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517306.

Topics:
Money and consumer rights > Taxes
Previous

HC 19: Taxable distributions from non-complying trusts, or

“Money from non-complying trusts is taxed separately”

Next

HC 21: Distributions from community trusts, or

“How you're taxed on money from community trusts”

Part H Taxation of certain entities
Trusts

HC 20Distributions from complying trusts

  1. An amount that a person derives in an income year is exempt income of the person under section CW 53 (Distributions from complying trusts) if—

  2. the amount is a distribution from a complying trust other than a community trust; and
    1. the amount is not beneficiary income.

      Compare