Deadline extension to September 30th, 2020 for annual Trust returns

The French tax administration announced that the annual Trust return (Cerfa TRUST-2 n°2181) can be filed until September, 30th, 2020.

Good news for trustees: the annual trust return can be filed until September 20th, 2020, instead of June 15th, 2020.

For the record:

  • Trust returns shall be filed each year by trustees
  • In case the trustees are not compliant with their reporting obligations, it is highly recommended that any interested party to file the return (i.e. settlors/beneficiaries/protectors)
  • Such reporting obligation arises if at least one party of the trust (settlor, trustee, beneficiary or protector) is a French tax resident or if assets held in trust are located in France and held by non-French tax residents
  • The annual Trust return shall contain:
    • Information related to the parties involved to the trust (i.e. name, first name, birth date, birth place, nationality of trustees, settlor, beneficiary(ies) and, since a French ordinance dated on February 12, 2020, the protector or each person expected to exercise an effective control on the trust).
    • The main characteristics of the Trust deed (i.e. nature of the trust, whether the trust is revocable or not, discretionary or not, etc.).
    • A summary of the assets held through the trust valued as at 1st January;
      • Financial and real estate assets located in France and outside France, should at least one of the settlor(s), trustee(s) or beneficiary(ies) be a French tax resident,
      • Financial and real estate assets located in France (even held indirectly through interposed foreign entities), should none of the parties of the trust be a French tax resident.
  • Depending on the circumstances, the sui generis tax (Article 990 J of the French tax Code) shall be paid at the same time as the return is filed (1,5% of the assets held in Trust).

Given the recent modification of the Law regarding the parties to be disclosed in the Trust returns (protector and any person expected to exercise an effective control on the trust), the Trust forms should be updated accordingly by the French tax administration, which is not the case as of today. Our recommendation is filing the Trust returns by using the Trust form « Cerfa TRUST-2 » related to 2019 tax year.

We draw your attention to the fact that alongside the annual Trust return, an even-based trust form should also be filed by the 15th of the month following any event affecting the Trust (Cerfa TRUST-1 n°2181).

We remain at your entire disposal should you need anything on this matter.

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Orianne Achéritéguy

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