Inheritance tax and donations – changes. There is a draft list

The obligation to pay tax on inheritance and donation depends on the value of the transaction and the degree of kinship between the parties. Depending on the situation, the amount of this tax ranges from three to 20 percent. In certain cases, there is an exemption from the obligation to pay this tax, and this applies, inter alia, to inheritance and donations within the so-called zero tax group.

According to the draft prepared by the Ministry of Finance, the free amount will be:

– for group 1 – PLN 10434.00 PLN (currently 9637 PLN), – vs. group 2 – 7878 zł (PLN 7276), – opposite Group 3 – zloty 5308 (PLN 4902).

Draft Regulations >>>

“The value of tax-exempt goods and property rights (…) is increased in the event that the price of non-food durables increases by more than 6%, to the extent corresponding to the increase in these prices ”- this is how the reason for preparing the project was explained in the explanatory note.

As it has been added, the tax-exempt and non-taxable amounts as well as the tax schedules determined by the Regulation will apply to cases in which the tax obligation has arisen from the day following the publication of the Regulation in the Journal of Laws.

The amount of inheritance and donation tax is not fixed and depends on the value of the property received and the degree of kinship between the buyer and the testator or donor, that is, the tax group. As a result, the value of the tax ranges from three to 20 percent.

Finance Ministry proposal:

The obligation to pay inheritance and donation tax is affected by the degree of kinship and the applicable tax-exempt amount.

By degree of kinship, three tax groups are distinguished:- group 1including spouses, grandchildren, ascendants, siblings, stepchildren, son-in-law, daughter-in-law, stepmothers, stepmothers, PLN 9637 tax-exempt amount); – group 2including great-grandchildren, parents’ brothers, full-brothers’ husbands and step-brothers, husbands-in-law’s husbands, great-grandchildren and stepchildren, and other great-grandchildren’s spouses (7276 zł free quantity); – Group 3covers all other persons not included in group 1 or 2 (4902 PLN free quantity).

In the context of the tax-exempt amount, not only the value of inheritances or individual donations is calculated. The sum of money transferred from the same person over the past five years is calculated.

Duty to pay tax Exempt from inheritance and donations between relatives. For people using this exemption, called Zero tax groupIt includes: spouses, grandchildren (children and grandchildren), ascendants (parents and grandparents), stepchildren, wives, brothers, stepfathers, and stepmothers.

As previously explained by the advisory firm PwC, within the zero-group, the closest family will benefit from the full exemption (unlimited), provided that the taxpayer: – in the case of acquiring property or equity – within 6 months from the date of the tax liability; – and in the case of acquisition by inheritance – within 6 months from the date of ratification of the court ruling confirming the acquisition of the inheritance;

He will report this fact to the head of the tax office On the SD-Z2 model.

Exceeding this deadline will result in full tax payment, if the fact that the donation was received as a result of the examination is revealed, the tax rate will be 20%. The value of the acquired property.