TYPE OF TRUST | INCOME TAX RATES | CAPITAL GAINS TAX INCLUSION RATE |
---|---|---|
Normal Trust | 45% | 80% |
Special Trust | Same as those applicable to natural persons except that the rebates and interest exemptions do not apply. | 40% |
Note: A special trust is a trust created solely for the benefit of someone who suffers from a disability that prevents such person from earning sufficient income from their maintenance or from managing their own financial affairs. A special trust can also be created by way of a testamentary trust whereby relatives of the testator who are alive on the date of death are the beneficiaries. In order to qualify as a special trust, the youngest of the beneficiaries must, on the last day of the year of assessment of that trust, be under the age of 18 years.