Beneficiaries must declare their share of income in their individual income tax returns as estate/trust income. As an administrator or trustee of an estate, you must notify all beneficiaries of this requirement.

Beneficiaries are people who are legally entitled to the income/capital of an estate/trust by virtue of a will; trust deed or the Law of Intestacy (i.e., when a person dies without a will).

Share of income declaration requirements 

Resident beneficiaries
Resident beneficiaries must declare their share of taxable income in their Individual Income Tax Returns under 'Others' as a charge or estate income.

Capital receipts (such as sale proceeds from properties/shares, insurance monies) are not taxable. Please do not declare such receipts.

Non-resident beneficiaries
For non-resident beneficiaries, the tax on their share of entitlement or distribution of income is assessed and paid at the estate / trustee level. No further action is required by non-resident beneficiaries.

Administrators/trustees are required to pay the taxes assessed on the non-resident beneficiaries’ shares of entitlement at the prevailing trustee rate for that year of assessment. They should ensure that income tax is paid within 1 month from the date of the Notice of Assessment (NOA)1

As the NOA will be issued in subsequent years (i.e. in the years following the year in which the income is earned), administrators/trustees are required to ensure that there are sufficient funds retained to pay the taxes when they are due.