unit trust tax return

qianshao_13

we have an unit trust for renting a property. I heard if there is undistributed income, the tax payable is at 46.5%. we have some money in account at the end of year for future payment for body corporate, rates and interest. shall we need pay tax at this %?

any help is much appreciated.

thank you

Martin_2F

you should ask your accountant

LENNY_DONG

银行账户有钱没关系

实际报税，在账面上利润分了，按受益人把税交了就可以

sidneygan

If the Trust has undistributed Profit, the profit will be taxed of 46.5%.

However, money dose not need to be physically distributed to the beneficiary's account.
But in the tax return the profit need to be distributed to beneficiary(s), and the amount should be included in beneficiary(s)'s tax returns.
Then the amount left in the Trust Bank Account become a loan that the beneficiary(s) lend to the Trust.

JohnnySu

银行账号有现金没有问题。 关键是税务申报上利润都要分配。也就是说，Unitholders都为利润交税了， 就可以。

f18

Should really ask your accountant for this type of specific question, as it all relates to how and why you current structure has been set up.

Generally answering your question, trust should distribute profit out to beneficiaries as per units held in this case and no profit retained in trust.

qianshao_13

in the statement of distribution page, is item W same as item B if it is related rental income?

hy851021

to be precise, not profit but taxable income has to fully distributed to beneficiaries in order for flow-through taxation to apply.

jeff_lawsons

In most cases, a Unit trust is a fixed trust where a unitholder has fixed entitlement to a share of the income or capital of the trust.  Unless a provision in the trust deed states otherwise, a unitholder is entitled to a share of the income of a unit trust at the end if the year when income is derived.

Unlike discretionary trust, the trustee of the unit trust will not be assessed on the trust income unless the unit trust is a hybrid unit trust which may give trustee's discretions as to distribution of income.