The current inheritance and gift tax exemption limits apply from October 2022. The new quota increases should be introduced from July. Already this week, they will most likely be finally accepted by deputies and signed by the president. How much will they be?
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Why does the tax-free amount change? All because of the update
Persons who have acquired an inheritance or a donation whose amount exceeds the tax-free value are obliged to settle it with the Tax Office. On July 1, 2023, new, higher limits in this regard will come into force. This means that more people will be exempt from this obligation. The changes result from the so-called slim VAT 3, which have so far been adopted by the Sejm and the Senate, but due to minor changes, must again be sent to the deputies, and then to the president. However, according to , everything indicates that they will be accepted.
Who will benefit from the new limits? These individuals may be completely exempt from gift tax
The amount of tax to be paid in the event of inheritance or donation is calculated on the basis of the buyer’s belonging to one of the groups.
- Down and groups include spouses, descendants (children, grandchildren, great-grandchildren), ascendants (parents, grandparents, great-grandparents), stepchildren, sons-in-law, daughters-in-law, siblings, stepfather, stepmother and in-laws.
- Down II tax group descendants of siblings, siblings of parents (uncles and aunts), descendants and spouses of stepchildren, spouses of siblings and siblings of spouses, spouses of spouses’ siblings, spouses of other descendants.
- Down III tax group other buyers.
In addition, there is also the concept of a zero tax group, to which the immediate family from the first group belongs. Inheritance or donation from them may be tax deductible, regardless of how much they amounted to. However, the exemption does not apply to inheritance when the testator’s death occurred before January 1, 2007. What’s more, in order to avoid paying, you must inform the office about it within 6 months. To avoid problems with documenting the donation, it should be paid into the recipient’s account or by postal order. If cash is handed over, the recipient will have to pay tax.
New tax free limits. How will they change?
With the amendment, the limits applicable from July 1, 2023 will be even several times higher. How much will they be?
- PLN 36,120 in the first tax group (now: PLN 10,434),
- PLN 27,090 in the second tax group (now: PLN 7,878),
- PLN 18,060 in the third tax group (now: PLN 5,308).
However, it should be borne in mind that when calculating the value from a specific person, all received from him within 5 years preceding the year of receiving the last one are summed up.
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.
