Trust is not a legal requirement like the Pty. Ltd. in a company.
The tax rate of a trust is 0% and with a trust, it gives its profit to other people or other entities in the family group and they pay the tax for the trust. However, it is not technically zero because we still need to deal with the profit and get taxed on it from the trust, but we choose who actually receives that profit.
If you don’t choose a beneficiary to receive it, it does actually pay the top rate of 47%. A bit of a technicality, we don’t want that ending up to be the case. But it gives its profit to other people or entities. And asset protection needs to be set up correctly as well.
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