Donation tax. Do you have to pay for Christmas gifts received?
In October 2022, a regulation by the Minister of Finance came into effect, which introduced changes regarding the value of donations, income limits and tax rates that must be paid when a certain amount is exceeded.
Current limits for individual tax groups miscellaneous. They are as follows:
- I tax group (children, parents, grandparents) – PLN 10.434,
- 2nd tax group (aunts and uncles) – 7878 PLN,
- Third tax group (unrelated persons) – 5308 PLN.
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See also: More tax changes. The Polish system reminds you of itself
This means that if we receive a gift that exceeds the limit stipulated in the regulation, we are forced to pay tax. It should be noted that a certain amount must also be paid for gifts of lesser value if in the last five years we have received so much cash from a particular person that after adding the gifts the upper limit has been exceeded.
According to “Strefa Biznesu”, you can avoid paying tax on the excess, but only in the first tax group. For this to happen, you must report the fact of receiving the donation to the tax authority within six months. Moreover, the money must go directly to the account.
A donation, on the example of my mother, of 20,000 PLN in cash to your child … will not fulfill this condition! Therefore, the gifted child will be obliged to tax the amount of the donation that exceeds the maximum limit, even if he reports it to the tax authorities on time – explained Piotr Juszczyk, chief tax advisor at inFakt, in an interview with “Strefa Biznesu”.
Failure to report the donation to the tax office It will be associated with serious consequences, as in the case of tax fraud.
A gift received from the principal may also be taxed, but this depends on the source of the purchase. Piotr Juszczyk revealed in a comment to “Strefa Biznesu” that the business owner must add the value of the gift to tax if the gift is funded from the company’s existing assets. If funds from the company’s social benefits fund are used, gifts worth less than PLN 2,000 are exempted on an annual basis from income tax.
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