The Conseil d'Etat the legal doctrine that subjects individual retirement trusts to a sui generis levy

Following the filing of an appeal for abuse of power, jointly with my colleague Cyril Modicom, the Conseil d'Etat overturn the BOFiP, which had stipulated that individual retirement trusts were subject to the sui generis levy.

In fact, in principle, real estate assets held by trusts are subject to a levy if they are not reported for real estate wealth tax purposes. This levy is equal to the value of the property multiplied by the highest rate in the real estate wealth tax schedule.

However, Article 990 J of the General Tax Code provides that trusts "established to manage pension rights acquired by beneficiaries in the course of their professional activities under a pension plan set up by a company or a group of companies" are not subject to this levy.

In the legal commentary on this provision,administration that "trusts established to administer individual retirement plans, however, remain subject to the levy."

In its decision, the Conseil d'Etat that the exclusion of individual pension trusts from the scope of the exemption from the sui generis levy is not provided for by law. The law provides that the exemption applies to both collective pension trusts and individual pension trusts.

The administrative doctrine that provides otherwise is therefore overturned.

The public rapporteur's findings also shed light on the scope of the tax exemption for "retirement" trusts.

EC, 8th and 3rd Chambers, May 7, 2026, No. 511615, unpublished

This legal watch provided by Mispelon Avocat, a law firm specializing in French tax audit and French tax litigation. You can stay legal watch subscribing to the newsletter via this link.