OVERVIEW OF TRUST REPORTING REQUIREMENTS IN FRANCE
Publié le :
18/10/2023
18
octobre
oct.
10
2023
Article 14 of Act no. 2011-900 of 29 July 2011, introduced into French law a tax regime for foreign trusts with "links" to France.
What is a trust?
Often misunderstood in France, trusts are defined in Article 792-0 bis of the French General Tax Code. A trust is a fiduciary arrangement in which a grantor (or settlor) gives power to a third party, called a trustee, to hold assets on behalf of a beneficiary or beneficiaries. The terms of the trust can specify exactly how and when the assets pass to the beneficiary(ies).
Trusts are common in many countries like the United States for estate planning purposes, including family-owned businesses that could have operations in France. This is not common practice here and creates confusion.
What are the reporting obligations in France?
French tax law introduced filing obligations for trustees (article 1649 AB of the Tax Code), notably when:
- the settlor or at least one of the beneficiaries is resident in France for tax purposes,
- the trust holds directly or indirectly property located in France,
- Event information return due following the creation, extinction or modification of a trust (Form no 2181 Trust 1)
When: The return must be filed within one month of the event it reports (creation and termination of the trust, modification of the trust agreement—change of trustee, beneficiary….)
Content: An event return must be declared if it concerns one of the following elements:
- Identification of the trust and address
- Identification and address of the trustees, grantors/settlors and beneficiaries
- Terms of the trust
- Real estate, real estate rights, or securities in France held by the trust when none of the trust’s actors are tax residents of France (trustees, grantors, and beneficiaries).
This detail requires reviewing the trust agreement, obtaining personal information on the actors involved, and keeping this information current.
Penalties: Breaches of reporting obligations are notably subject to a fixed fine of €20,000. The settlor and certain beneficiaries considered settlors who fall within the scope of the levy are jointly and severally liable with the trustee for payment of this fine.
- Annual declaration of the market value of the assets placed in a trust on 1 January (Form no 2181 Trust 2)
When: The return must be filed before 15 June, each year.
Content: This return includes the following information:
- Identification of the trust and address,
- Identification and address of the trustees, grantors/settlors and beneficiaries,
- Terms of the trust,
- Inventory of the trust's assets, including securities in France, when none of the actors in the trust are tax residents in France (trustees, grantors, and beneficiaries).
Penalties: Breaches of reporting obligations are punishable by a fixed fine of €20,000. The settlor and the beneficiaries who fall within the scope of the levy are jointly and severally liable with the trustee for payment of this fine (CGI art. 1754 V, 8; BOI-CF-INF-20-10-50 n° 80).
Ringlé, Roy & Associés can help you prepare these information returns for your trusts.
Historique
-
Déplacements professionnels du salarié itinérant : le temps de trajet entre le domicile et les sites des clients ne constitue pas du temps de travail effectif
Publié le : 15/11/2023 15 novembre nov. 11 2023Droit du travail - Employeurs / Relation individuelles au travail
Par une décision du 25 octobre 2023, la Cour de cassation rappelle, sur la ba...Source : www.lemag-juridique.com -
Punaises de lit au travail : attention à votre obligation de prévention !
Publié le : 07/11/2023 07 novembre nov. 11 2023Droit du travail - Employeurs / Responsabilité accident du travail
Le Code du Travail impose à l'employeur de prendre les mesures nécessaires po...Source : www.legisocial.fr -
Flash actu sur la loi anti-squat avec Me Caroline RANIERI et Maître Emilie COSTA
Publié le : 02/11/2023 02 novembre nov. 11 2023Actualités du cabinet
Pour notre première chronique, nous avons décidé d’évoquer l’actualité récent... -
Le mi-temps thérapeutique ne peut pas minorer la prime de participation
Publié le : 25/10/2023 25 octobre oct. 10 2023
Fondant sa décision sur l’interdiction de toute discrimination en raison de l...Source : www.efl.fr -
APERCU DES OBLIGATIONS DECLARATIVES FRANCAISES DES TRUSTS
Publié le : 25/10/2023 25 octobre oct. 10 2023Actualités du cabinet
L'article 14 de la loi n°2011-900 du 29 juillet 2011, a introduit en droit fr... -
OVERVIEW OF TRUST REPORTING REQUIREMENTS IN FRANCE
Publié le : 18/10/2023 18 octobre oct. 10 2023Actualités pour site version anglaise
Article 14 of Act no. 2011-900 of 29 July 2011, introduced into French law a...