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Report Templates - Trust tax rate 39% 2025 and 33% in comparatives in annual accounts tax note

The NZ tax rate for a trust's income tax has changed in the 2025 tax year from 33% to 39% when the taxable income in the trust is $10,000 or more.
At present we are not able to have a different formula in comparatives to the formula in current year, so a modification to the If( . . ) statement in the current annual accounts tax note cannot be made that would work for 2025 and comparatives.

At the moment the only solution available per Xero Support is a custom line, with accounting staff manually entering the tax payable amount calculated externally at 33% or 39%.

It would be great if the software engineers at Xero could implement a fix for this so that an if / then formula could be used that takes into account the tax year.

Thanks
Paul

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Paul Siddles shared this idea  ·   ·  Report…  ·  Admin →
Completed  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

Hi community, back to share that we’ve just updated the Xero provided NZ Trust Annual Accounts templates(and Agricultural variants), so these now calculate 0% when taxable profit is negative, 33% up to $10k, and 39% above $10k. 🥳

We appreciate everyone's support and feedback on the impact this would have for you, here. Thanks!

Show previous admin responses (4)
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  • Gerard Dodd commented  ·   ·  Report

    Work around for the reports.
    Replace the formula with this:

    IF(Taxable Profit (Loss)>10000.99,Taxable Profit (Loss)*0.39,if(Taxable Profit (Loss)>0,Taxable Profit (Loss)*0.33,0))

    Delete the comparative column if LY profit is over $10,000

    or if you have a spare $750 + GST then:

    Report Right are running a $750 (excl) special to take care of updating your 2025 and 2026 trust tax notes for you.
    If you are interested, please contact Marney Price at marney@reportright.co.nz

  • Penny Gough commented  ·   ·  Report

    would have expected this to have already been included to keep up with the changing legislation.

  • Ruth Simmonds commented  ·   ·  Report

    This is an extremely important part of preparing financial reports for our clients.

  • Gerard Dodd commented  ·   ·  Report

    That's a great idea! Therefore it will never happen.