New Zealand: Offshore Trusts Guide
Taxation of Trusts
For income tax purposes, there are three distinct types of trust: complying trusts (formerly qualifying trusts), foreign trusts and non-complying trusts (formerly non-qualifying trusts). This distinction is important, because the type of trust determines whether some distributions from a trust are taxable.
A complying trust is one which has been taxed in New Zealand on all its trustee income since the date it began. Complying trusts include:
- trusts settled by New Zealand residents with New Zealand trustees;
- estates of people who were New Zealand residents when they died; and
- other trusts which have elected to become complying trusts.