US expats in France: Navigating trust reporting obligations
23.05.2025
US expats living in France must comply with their trust reporting obligations. Failure to do so can result in severe penalties. The Ecovis experts know what to do to ensure legally compliant implementation of these requirements.
Unlike most common law countries (USA, UK, Canada in particular), French law does not recognise the existence of trusts. The assets held in such trusts and the income they generate may be seen as being held and received directly by the trust beneficiaries.
US citizens in particular living in France need to be aware of their ongoing tax obligations. One of the most important yet often overlooked areas involves US reporting requirements for trusts, in which a US citizen is involved, either as a beneficiary, trustee, or through foreign assets (please note that this obligation is also triggered when one of the assets placed in trust is located in France).
Which declarations must be made
There are two specific declarations to be made: a declaration of the market value of the items placed in trust and an eventual declaration, for example if there is a change affecting the trustees or beneficiaries of the trust, or if any changes are made to the trust deeds. The triggering event for this obligation is assessed on 1 January of a given year, and the deadline is generally in June of the same year.
The Ecovis experts recommend that affected US expats should definitely consult a tax attorney specialising in cross-border matters. This is the only way to ensure that the complex obligations are fulfilled, especially with regard to foreign trusts, in a tax-efficient manner.
If you need advice on trust reporting or other tax matters, please contact us. Nicolas Savoy, Lawyer, ECOVIS CF Société d’Avocats, Paris, France
Working in Vietnam as a foreigner: What companies and employees need to know
21.05.2025
Foreign workers wanting to work in Vietnam must go through a complex process to obtain a work permit. Companies that want to hire foreign workers also have numerous obligations to fulfil. The Ecovis experts explain exactly what these obligations are.
Conditions for foreigners to work legally in Vietnam
According to the provisions of the 2019 Vietnamese Labour Law, numerous conditions must be met in order to work legally in Vietnam. Foreigners must:
Be at least 18 years old and possess full civil capacity
Provide evidence of any relevant professional qualifications, technical skills or work experience
Meet health standards set by the Ministry of Health
Not be serving a criminal sentence or be under criminal investigation in Vietnam or any other country. A clean criminal record is necessary.
Obtain a work permit issued by the Vietnamese authorities, unless exempted under specific regulations
Required documentation for foreign workers in Vietnam
Foreign workers applying for a work permit in Vietnam must submit the following documents:
A certified copy of a valid passport, which must comply with Vietnamese legal requirements
A health certificate which must be issued by a competent medical authority in Vietnam or abroad and be valid for up to 12 months
A criminal record certificate issued by a competent authority in Vietnam or abroad no more than 6 months prior to the date of submission
Documents verifying the applicant’s status as a manager, executive director, expert, technical worker or other regulated professional
Confirmation from the Home Affairs Department on the approval of the enterprise’s demand for employing foreign workers
Two recent passport-sized photos, which must be taken within six months before submission
Legal documents from the employer such as an enterprise registration certificate, company charter, etc.
Power of attorney for the applicant and the applicant’s legal documents
Important note: The law requires that all foreign-issued documents must be legalised, notarised and translated into Vietnamese.
Ecovis' team of experienced lawyers supports employers and foreign workers in applying for a work permit – from the job advertisement to the application for a criminal record check and the submission of the application. Vu Manh Quynh, Managing Partner, ECOVIS Vietnam Law, Ho Chi Minh City, Vietnam
Work permit process for foreign workers in Vietnam
Step 1: Recruitment and candidate search (within 30 days)
Employers must conduct a recruitment process within 30 days, which includes posting job vacancies on the official labour portals (Ho Chi Minh City: https://vieclamhcm.com.vn/ or Hanoi: https://vieclamhanoi.net/trang-chu), searching for candidates, and conducting interviews. This process ensures that domestic workers are given priority before hiring foreign employees.
Step 2: Approval of foreign labour use (10 working days processing time)
If they wish to employ foreign workers, the employer must submit an explanation of the demand or of the change in foreign employment demand, depending on their situation.
Step 3: Work permit application (5 working days processing time)
Once approval is granted, the employee must submit a work permit application with all the required documentation as listed above. If the application is valid, it will be processed within 5 working days.
For further information please contact:
Vu Manh Quynh, Managing Partner, ECOVIS Vietnam Law, Ho Chi Minh City, Vietnam
Email: quynh.vu@ecovislaw.vn
Nguyen Nhuan, Partner, ECOVIS Vietnam Law, Ho Chi Minh City, Vietnam
Email: nhuan.nguyen@ecovislaw.vn
Tax audit in Peru: When contradictions and inconsistencies invalidate tax authority’s assessments
19.05.2025
Growing pressure to collect tax revenue has intensified audit activity in Peru. This has led to significant inconsistencies in the assessments of the Peruvian National Superintendence of Customs and Tax Administration (SUNAT). However, a recent ruling by the tax court demonstrates that legal coherence remains essential. The Ecovis consultants explain and evaluate the ruling.
In recent months, Peruvian taxpayers have experienced an unprecedented wave of tax audits. The aggressiveness of SUNAT’s verification procedures — particularly towards formal and compliant businesses — has reached levels not previously seen. This heightened scrutiny appears closely tied to the tax administration’s efforts to meet its ambitious revenue targets for fiscal year 2025.
While such goals may be fiscally justified, the means of achieving them must still respect fundamental legal principles. This was reinforced by tax tribunal decision no. 6435-12-2024, which invalidated an income tax adjustment on the grounds of logical inconsistency in the tax authority’s arguments.
Contradictory grounds for disallowance
The case at hand reveals a serious contradiction in SUNAT’s assessment. On one hand, the tax authority rejected the deduction of certain service expenses by asserting that the services had not been rendered (questioning item by item the evidentiary support). On the other hand, it also claimed that such services were not causally linked to the generation of taxable income, implicitly acknowledging their occurrence.
This double argument – both denying the transaction’s existence and simultaneously analysing its relevance – was found to be legally incoherent.
The tax tribunal ruled in favour of the taxpayer, concluding that the adjustment lacked a rational, non-contradictory foundation and therefore was “not in accordance with the law.” Consequently, it ordered the annulment of the challenged portion of the tax assessment.
We challenge inconsistent tax rulings or incorrect assessments by the Peruvian tax authorities for you. Octavio Salazar Mesias, Partner, ECOVIS Peru, Lima, Peru
Legal framework and the principle of congruence
This ruling upholds the constitutional requirement that tax assessments and administrative actions observe the principle of congruence, meaning arguments must be coherent and logically structured. This principle has been recognised by the Peruvian Constitutional Court in case no. 00487-2022-PHC/TC, which affirmed that inconsistencies in administrative reasoning may result in violations of due process.
The tribunal’s decision adds to a growing body of precedents (e.g., resolutions nos. 0297-5-2017, 05788-8-2021 and 0366-11-2023) that stress the need for rational legal justification in tax controversies. These rulings remind both taxpayers and SUNAT that enforcement cannot disregard legal certainty in favour of collection efficiency.
Conclusion: towards balanced tax enforcement
The decision marks a key moment for the defence of legal rationality in tax audits. While fiscal pressure may drive more rigorous controls, contradictions in assessments cannot be tolerated. For both multinational and domestic taxpayers operating in Peru, this case reinforces the importance of challenging tax determinations that lack consistent logic or violate due process principles.
