Just wondering, does NZ have trust structures similar to Australia's hybrid trusts?
These are a combination of a discretionary and unit trust rolled into one, where income units can be purchased providing a right to income but capital gain can be distributed elsewhere using the discretionary aspect of the trust.
Also, I gather with a NZ trust you can retain profits in the trust (ie. not distribute them) and they will be taxed at 33%. If then you retain capital gains in the trust, since NZ doesn't have capital gains tax (assuming "investment" rather than "trading") does that mean they would also be taxed at 33% or not at all?
Thanks.
GP
These are a combination of a discretionary and unit trust rolled into one, where income units can be purchased providing a right to income but capital gain can be distributed elsewhere using the discretionary aspect of the trust.
Also, I gather with a NZ trust you can retain profits in the trust (ie. not distribute them) and they will be taxed at 33%. If then you retain capital gains in the trust, since NZ doesn't have capital gains tax (assuming "investment" rather than "trading") does that mean they would also be taxed at 33% or not at all?
Thanks.
GP
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