If you are a non-resident beneficiary, tax on your share of entitlement or income distribution will be paid by the trustee of the trust.
How to declare (For resident beneficiary only)
Before Year of Assessment 2008
If you are in receipt of taxable trust income or entitled1 to trust income, you are required to declare the amount in your personal income tax returns under 'Others' as a charge. Generally, capital receipts (such as sale proceeds from properties/shares, insurance monies) are not taxable. Please do not declare such receipts in your returns.
Effective from Year of Assessment 2008
With effect from the Year of Assessment 2008, beneficiaries who are in receipt of or entitled1 to trust income will enjoy tax exemption on sources of income applicable to individuals. Find out more about Income Tax Treatment of Trusts (2nd edition) (84KB)
If the trust is only in receipt of income (such as approved bank interest and foreign-sourced income) that is exempted from tax at the individual taxpayer's level, you will also enjoy the exemption. Please do not declare such exempt income. For a complete list of sources of income that qualify for exemption at individual's level, please refer to 'Individuals - Know what is taxable, what is not'.
1In a discretionary trust, beneficiaries are only 'entitled' when the trustee distributes the income. If the income is accumulated, trustee has to pay the tax.