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Trust - Coggle Diagram
Trust
Trust annuities
When the trust body is tax resident or when all income of the trust body is derived from Malaysia, then the recipient shall be taxed on the annuity received
Resident trust
Even though there is no total income of the trust body, the annuities paid are deemed to be derived from Malaysia
Non-resident trust
Even if no total income, and the trust is non-resident, the annuity is still taxable on the hands of the beneficiary
Where the all sources of income of trust body is derived from Malaysia, the amount to be assessed on the beneficiary is the annuity paid
Where the sources of income is derived from both Malaysia and non-Malaysia, then the amount of annuity is the amount deducted/restricted to the aggregate income
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Resident status
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Would have implications for the taxability of annuity received by a beneficiary and the application of section 61(2) of ITA 1967
Type of trust body
Non-discretionary
Where single beneficiary is entitled to the trust for the whole basis year, the total income of trust = total income of beneficiary
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Discretionary
Trustees are given power to distribute income of the trust in ranging proportions, or not at all, for each year
Single
The share of the beneficiary, the lower of
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Several
Where the aggregate of all sums received by the beneficiaries in Malaysia exceeds the total income of the trust body, the SI shall be
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Where otherwise, the amount received by the beneficiary shall be the SI from the trust body
Mixed
The total income of the trust body is segregated into discretionary and non-discretionary parts using the formula
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