A trust is not itself a subject for assessment to any tax in the Federation and the beneficiaries of a trust are exempt from all income, capital gains and withholding taxes which may arise out of their interest in the trust if the trustees of the trust are in respect of it effecting transactions exclusively with persons who are not resident in the Federation.

A trust is called an exempt trust if its beneficiaries qualify for the tax exemption mentioned above. An ordinary trust is a trust which is not an exempt trust.

No estate, inheritance, succession or gift tax, rate, duty, levy or other charge is payable by any person with regard to any property held in, or securities issued or created in respect of, an exempt trust.

No stamp duties are payable by any person with regard to any transaction in securities issued or created in respect of an exempt trust.