Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Agents

HD 12: Trusts

You could also call this:

“Tax responsibilities for trusts and their beneficiaries”

If you get money from a trust in a tax year, the trustee of that trust is treated as your agent for tax purposes. This doesn’t apply if you’re getting money from a community trust.

If you’re a trustee of a trust (except for a trust that is a tax charity) and you earn income for the trust in a tax year, and someone who set up the trust lives in New Zealand that year, that person is treated as the trustee’s agent for the income tax the trustee needs to pay. But this doesn’t include any income tax that the trustee has to pay as an agent for someone else.

These rules are explained in more detail in section HC 32 and section HC 29 of the Income Tax Act 2007.

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 It might be out of date or be missing some parts.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=DLM1517407.

Topics:
Money and consumer rights > Taxes
Previous

HD 11: Nominated companies, or

“Companies that act as agents for consolidated or imputation groups”

Next

HD 13: Unit trusts, or

“Trustees act as representatives for unit trusts' income”

Part H Taxation of certain entities
Agents

HD 12Trusts

  1. If a beneficiary of a trust, other than a beneficiary of a community trust, derives an amount of beneficiary income or taxable distribution in a tax year, the trustee of the trust is treated under section HC 32 (Liability of trustee as agent) as the agent of the beneficiary.

  2. If a trustee of a trust, other than a trust that is a tax charity, derives trustee income in a tax year, and a settlor of the trust is resident in New Zealand in the tax year, the settlor is treated under section HC 29 (Settlors’ liability to income tax) as the agent of the trustee for income tax payable by the trustee (but not for income tax that the trustee is liable for as agent).

Compare
Notes
  • Section HD 12(2): amended, on , by section 98(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section HD 12 list of defined terms charitable trust: repealed, on , by section 98(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section HD 12 list of defined terms tax charity: inserted, on , by section 98(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).