Income Tax Act 2007 section 9

The trust rate and dividend trust rate

Section 9 sets out the two special rates of income tax that apply to income held within trusts, particularly where trustees accumulate income or have discretion over how it is distributed.

• The trust rate of income tax is set at 45%
• The dividend trust rate is set at 39.35%
• These rates apply primarily to accumulation or discretionary trust income
• The trust rate was formerly known as "the rate applicable to trusts"