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 DIRECT TAXES - Taxation of Trusts
(click on
heading below then click again)
 Unit Trusts
Landowner
Resource Trust
Other Trusts
Taxation
of Trusts
Trusts are taxed at
different rates, depending on their status.
(a) Unit Trusts
Unit trusts are defined as
broadly held trusts whose units are listed for sale on a stock exchange or
are widely offered for sale to the public. From January 1997 unit trusts are
liable for tax on their net income at a rate of 30%. Distributions from unit
trusts are exempt from income tax.
(b)
Landowner Resource Trust
These trusts are set up
specifically to deal with landowner interests in resource projects such as
mining, petroleum or logging. The beneficiaries can only be present and
future landowners in the project area. Projects and trusts must be approved
by the Minister.
The
feature of these trusts is that income derived is taxed only once, and all
distributions from the trusts are exempt from income tax.
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