Income Tax Act 2007

Taxation of certain entities - Trusts

HC 24: Trustees’ obligations

You could also call this:

"What trustees must do about income tax"

You must pay income tax on the taxable income you get as a trustee. You pay tax as if you were an individual who is entitled to the trustee income. You cannot get tax credits under subparts LC and LD when determining your income tax liability. You are treated as having trustee income when a minor gets beneficiary income, according to section HC 35. You can use section DV 9(2) to calculate your deductions. Some rules about superannuation funds, in sections CX 40 and DV 1 to DV 4, override this rule.

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 It might be out of date or be missing some parts.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=DLM1517320.

This page was last updated on 29 January 2026 — View changes

Topics:

Money and consumer rights > Taxes

HC 23: Temporary absences of beneficiaries, or

"Rules for trust income when you temporarily leave New Zealand"

HC 25: Foreign-sourced amounts: non-resident trustees, or

"Rules for taxing overseas income of non-resident trustees"

Part HTaxation of certain entities
Trusts

HC 24Trustees’ obligations

A trustee must satisfy the income tax liability for their taxable income as if they were an individual beneficially entitled to the trustee income.
In determining the income tax liability, the trustee is not entitled to have a tax credit under subparts LC and LD (which relate to tax credits for natural persons and for certain gifts).
Section HC 35 applies to treat beneficiary income derived by a minor as if it were trustee income.
Section DV 9(2) (Trusts) applies for the purposes of calculating a trustee’s deductions.
Sections CX 40, and DV 1 to DV 4 (which relate to superannuation funds) override this section.

Compare

2004 No 35 ss DV 9(2), HH 4(1), (2)

Notes

Section HC 24(2) heading: replaced (with effect on 1 April 2009), on 2 November 2012 (applying for the 2009–10 and later income years), by section 83(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section HC 24(2): replaced (with effect on 1 April 2009), on 2 November 2012 (applying for the 2009–10 and later income years), by section 83(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section HC 24 list of defined terms cash basis person: repealed (with effect on 1 April 2009), on 30 March 2021, by section 87 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).