Business Tax Rates

Trusts and Trustees Tax Rates
In general:

  • The initial amount of money you put into a trust is not taxed, although you may need to pay gift duty

  • Any income the trust earns (e.g, through investment or business income) that it doesn’t distribute to its beneficiaries is taxed at a flat rate of 33 cents in the dollar. The trustee is liable for paying this income tax regardless of where they live in the world.

  • Distributions to beneficiaries of the trust are taxed at the rate of tax applicable to each beneficiary as an individual.

Non-Profit Organisations Tax Rates

A non-profit organisation is any society, association or organisation that:

  • Is not carried on for the profit or gain of any member and

  • Have rules that do not allow money, property or any other benefits to be distributed to any of its members.

Some non-profit organisations may be incorporated. That is, they may be registered with the Ministry of Economic Development Business and Registries Branch (under the 'Related websites" section of IRD’s site.)

Non-profit organisations can have profit-making activities taxed as business income in the normal way. These organisations must have written rules that meet certain criteria to get an income tax exemption. A deduction of up to $1,000 per year is available for some non-profit organisations. By deducting this amount from the organisation's net income you reduce the amount of tax to pay.

If the organisation has profit-making activities, it must pay income tax. Non-profit organisations that are registered and incorporated under the Incorporated Societies Act 1908 are taxed at the rate of 33 cents in the dollar. Unincorporated organisations are taxed at the same rate as individuals.

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Some content was obtained from the IRD and incl without change to ensure total accuracy and compliance with current law.