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Income Tax Act 2007

Taxation of certain entities - Trusts

HC 40: De minimis trust

You could also call this:

“Small trust with low income”

A trust is called a de minimis trust in a year if the trustee’s net income for that year is $10,000 or less. When figuring out if a trust is a de minimis trust, you don’t count any income that’s treated as trustee income under section HC 35 or HC 38. This rule helps you understand when a trust is considered small enough to be called a de minimis 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=LMS960443.

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Part H Taxation of certain entities
Trusts

HC 40De minimis trust

  1. A trust is a de minimis trust in an income year if the net income of the trustee for that income year, excluding any income treated as trustee income under section HC 35 or HC 38, is $10,000 or less.

Notes
  • Section HC 40: inserted, on , by section 97(1) (and see section 97(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).