Inheritance and donation tax should be paid by persons who acquired property as an inheritance or donation, and its amount is higher than the tax-free value. Thanks to the favorable changes, more people will be released from it. All because of higher limits.
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Higher tax-free amounts for inheritances and gifts. How much are they?
According to the Inheritance and Gift Tax, the tax amount is determined on the basis of the buyer’s tax group, i.e.:
- And the group to which the spouse, ascendants, descendants, as well as siblings, stepchildren, daughter-in-law, son-in-law, stepfather, stepmother and in-laws belong.
- Group II, which includes descendants of siblings, siblings of parents, descendants and spouses of stepchildren, spouses of siblings, siblings of spouses, spouses of spouses’ siblings, spouses of other descendants.
- Group III, i.e. other buyers.
Importantly, the tax is not subject to a donation that does not exceed a specific amount. In accordance with the regulation of the Minister of Finance from October 13, 2022 higher amounts free from inheritance and donations apply. What do they look like now?
- PLN 10,434 instead of PLN 9,637 in the first tax group,
- PLN 7,878 instead of PLN 7,276 in the second tax group,
- PLN 5,308 instead of PLN 4,902 in the third tax group.
This means that the recipient has to pay tax when the value of the donation exceeds a given amount. However, it should be borne in mind that when calculating it, it adds up all donations received from one person in the 5 years preceding the year of receiving the last one. Remember that when you concluded a contract with a notary public, you pay tax or you are exempt from it.
Who belongs to the zero tax group? In these cases you are exempt from tax
In addition, there is also the concept of a zero tax group. We include the closest family from the first group. To take advantage of the exemption from the fee, when you exceed PLN 10,434, you must submit the SD-Z2 form to the tax office. You can do it in person or online within 6 months.
The case is slightly different in the case of a cash donation above PLN 10,434. It may be exempt from tax if two more conditions are met:
- The donation will be notified within 6 months of receipt.
- In addition to the SD-Z2 application – the receipt of money will be documented in the form of e.g. bank transfer confirmation or postal order.
While the first condition does not give reasons, the second is different. Why? It often happens that according to the Tax Office, a donation from loved ones in cash does not meet the second requirement. Even if the recipient immediately pays it to the account.
Source: Gazeta
Bruce is a talented author and journalist with a passion for entertainment . He currently works as a writer at the 247 News Agency, where he has established himself as a respected voice in the industry.
