The 2019 Finance Act in France has modified the content of the annual declaration related to trusts.
The Act has restored the reporting obligations as before the creation of the tax on real estate assets, specifically:
- If the settlor of the trust or the beneficiary deemed to be the settlor or at least one of the beneficiaries is a resident of France for tax purposes, all the assets and rights situated in France or outside France and their capitalised income must be reported in the annual declaration.
- If none of them is a resident of France for tax purposes, only the assets and rights situated in France and their capitalised income must be reported.
This annual return needs to be filed every year before 15 June and the tax authorities can audit the last ten years.
For further information on this change please view this tax alert.