Hello,
I have a Trust in Australian jurisdiction which contains crypto currency and is generating capital gains from staking rewards and interest.
There is a non-resident beneficiary in Thailand which Australia has a tax treaty with, who will receive these capital gains as distributions.
How will capital gains which are distributed to the non-resident beneficiary be taxed? If at all? And at what rate? And who pays it?
Thanks,
cryptonite
Hi @cryptonite
Thanks for waiting while we checked this out with our technical area.
Trustees who make distributions to non-resident beneficiaries will generally be assessed and pay tax on that income on behalf of the non-resident beneficiary. This includes distributions of capital gains.
We note that any capital gains discount that may have been applicable (for example, if the asset was held for more than 12 months) cannot be claimed by the trustee when the beneficiary is a non-resident.
The trustee will pay tax at marginal rates. The non-resident beneficiary may be entitled to a credit of the tax paid by the trustee when they lodge their own tax return.
You can read more about this on our website at Rules for non-resident beneficiaries. You can also apply for tailored technical assistance if you would like us to provide further advice that is more specific to your circumstances.
Hi @cryptonite
We'll check this with our technical team.
Hi @cryptonite
Thanks for waiting while we checked this out with our technical area.
Trustees who make distributions to non-resident beneficiaries will generally be assessed and pay tax on that income on behalf of the non-resident beneficiary. This includes distributions of capital gains.
We note that any capital gains discount that may have been applicable (for example, if the asset was held for more than 12 months) cannot be claimed by the trustee when the beneficiary is a non-resident.
The trustee will pay tax at marginal rates. The non-resident beneficiary may be entitled to a credit of the tax paid by the trustee when they lodge their own tax return.
You can read more about this on our website at Rules for non-resident beneficiaries. You can also apply for tailored technical assistance if you would like us to provide further advice that is more specific to your circumstances.
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