May 10, 2024
No doubt this is not news to anyone by now, starting from 1 April 2024 the income tax rates for Trusts have changed.
Trusts were previously taxed at a flat rate of 33% on their income.
The new rules for any income earned and retained by the Trustees of a Trust are now taxed at a higher rate of 39%.
If your trust earns $10,000 or less in a tax year, the tax rate remains at 33%. There are other exceptions to the trust tax hike such as disabled beneficiary trusts and energy consumer trusts.
If you are unsure if you are an exception, make sure you contact the office for further clarity.
