Inland Revenue has finalised its operational statement on the new reporting requirements for domestic trusts. In a nutshell, from the 2021 - 22 income year, most New Zealand trusts must:
file an income tax return,
comply with additional disclosures, and
prepare financial statements.
Non-active complying trusts with no income are exempt from these three requirements. Non-active complying trusts with income of $200 or less in interest income are exempt, provided they complete an IR633 (Non-active trust) declaration.
We suggest trustees become aware of the extended requirements. We are here to help you navigate these changes.