Section II: Income tax and corporation tax

Where the settlor’s rights representing the property or rights transferred into the trust assets are entered on his balance sheet, the share of profit corresponding to these rights is determined according to the rules applicable to the profit made by the settlor. The settlor remains personally subject to income tax or corporation tax for the share of profit corresponding to his rights representative of the property or rights transferred into…

Any variation or depreciation in the amount of the settlor’s rights representing the property or rights transferred to the trust estate has no impact on the settlor’s taxable income.

Where the determination of the income tax regime or the application of exemption regimes depends on the amount of turnover, the turnover generated by the management of the trust assets is added to that generated by the settlor. Where there is more than one settlor, the turnover is apportioned in proportion to the actual value of the property or rights placed in trust by each of the settlors on the…

I. – In the event of the assignment or cancellation of all or part of the settlor’s rights representing the property or rights transferred to the trust assets, the results of the trust assets shall be determined, on the date of assignment or cancellation, in accordance with the conditions set out in articles 201 et following and taxed in the name of the transferor. The difference between the transfer price…

I. – The provisions of Article 238 quater I do not apply in the event of a transfer of the settlor’s rights representing the property or rights transferred into the fiduciary estate carried out as part of a transaction benefiting from the provisions set out in articles 41,151 octies, 151 octies Aor 210 A. II. – The provisions of article 238 quater I do not apply where, in the absence…

I. – As an exception to the provisions of Article 238 quater I,when the trust contract is terminated, the profits or losses as well as the capital gains or losses resulting from the transfer of the assets or rights from the trust assets to the settlor are not included in the taxable income for the year of transfer if the following conditions are met: 1° The trust contract is terminated…

The trust shall be the subject of a declaration of existence by the trustee under conditions and within time limits set by decree.

The trustee is bound by the reporting obligations normally incumbent on companies subject to the partnership tax regime defined in Article 8.

When the settlor of a trust defined in Article 2011 of the Civil Code does not carry on an activity falling within the articles 34 or 35, an agricultural activity within the meaning of article 63, a professional activity within the meaning of 1 of l’article 92 or a civil activity subject to corporation tax, the transfer of assets or rights into a fiduciary estate is not a chargeable event…

Where the settlor’s rights representing the property or rights transferred into the trust assets are not recorded in the balance sheet of a company, the trust income is taxed in the name of each settlor for the share of income corresponding to his rights representing the property or rights transferred into the trust assets, in proportion to the market value of the property or rights placed in trust, assessed on…