Show download pdf controls
  • Distributions from foreign trusts

    If your clients receive money (or assets) from overseas, it's important they understand their tax obligations.

    There are a number of payments made from overseas that may need to be included in your client’s assessable income, such as distributions from foreign trusts.

    Your client might not identify the amount (or asset) they've received as a trust distribution but see it as a gift or loan from a family member.

    You can help your clients recognise whether these amounts should be included in their tax return by ensuring they identify:

    • Who paid the money or transferred the asset. For example, is the amount (or asset) from a foreign trust directly or has it been received indirectly from a foreign trust through another entity or person.
    • Whether they are a beneficiary of the foreign trust.
    • What the money represents. For example, is it payment for services, a gift, a distribution or a loan.

    Any amount (or value of an asset) received by an Australian beneficiary from a foreign trust, either directly or indirectly, may need to be included as assessable income in the income year that it is received.

    See also

    Receiving payments or assets from foreign trusts

    Last modified: 03 Dec 2021QC 67408