Trustees of trusts with connections to France must declare the market value of the assets held within the trust as of 1 January each year. Only the French assets will need to be declared unless the settlor or a beneficiary is French resident, in these instances, worldwide trust assets will need to be declared.
Due to the coronavirus pandemic, the deadline to file the French annual trust return has been extended from 15 June 2020 to 30 September 2020.
The French legislation on trusts is far reaching and seeks to cover every situation where a trust has a connection with France, for example when a trust holds a French asset such as shares in a French company or when a beneficiary of the trust is a resident of France. The penalties for non-compliance are often far too severe to be ignored, such as a €20,000 fixed fine per missing declaration.
For further information on our French tax and trust reporting services, please speak to your usual Druces contact or:
Please note this article is for general information. You should not rely on it without professional advice on the specific facts of your case.