Tax on inheritances and donations: A breakthrough for Poles. You can save a fortune

There is simply a revolution in inheritance and donation taxation that can change the situation of thousands of Poles! The government has just published a draft amendment to the bill, which will loosen the existing strict rules. This. a real relief for those who, for random reasons, failed to complete the formalities within the statutory deadline. The Ministry of Finance responds to citizens' problems, giving them a second chance to benefit from the taxation exemption due. Prepare for changes that may save you tens of thousands of PLN and prevent you from unexpected financial consequences.

To date, even a tiny hold with a donation or inheritance, especially for the closest family, meant losing the relief and having to pay a advanced tax. Now it's about to change! fresh government will let recover the right to be released, even if the 6-month deadline is exceeded. This is simply a step towards a more just and flexible system, adapted to real, frequently dramatic life situations. The task is already in consultation and has a chance to enter into force in 2025.

No more late penalty? Revolution for “zero group”

The current rules are ruthless. Members of alleged ‘zero group’ – the closest family, specified as the spouse, children, grandchildren, parents, grandparents, stepchildren, siblings, stepdad and stepmother – can benefit from the full taxation exemption on inheritance and donations, provided that they declare the acquisition of the property within 6 months of the date of the taxation obligation. The absence of this notification within the time limit, even if it was due to nonsubjective reasons, automatically resulted in the failure of the right to relief.

Consequently, alternatively of enjoying the inherited property or the gift received, the payer had to pay a taxation which, in utmost cases, could even be 20% of acquired assets. This is an amount that has been a immense financial burden for many families. However, the amendment of the Act provides for the anticipation of restoration of that notification period in random situations. We are talking about events specified as a severe illness, an emergency, or a natural disaster that prevented the completion of formalities. This solution is intended to defend honest taxpayers and prevent unfair sanctions, giving them a real second chance to avoid tax.

New rules for calculating the term: erstwhile does the taxation work actually arise?

Another crucial change that is intended to simplify the life of heirs is the modification of the minute erstwhile the taxation work arises in succession. Under the current regulations, this work arose at the time of adoption of the inheritance. In practice, this frequently led to confusion and problems with synchronisation with another legal procedures, specified as court succession proceedings.

The Ministry of Finance's draft assumes that the taxation work will only arise erstwhile the order to get the inheritance or registry the certificate of succession by the notary has been approved. This. key change that will importantly improve inheritance processes and let taxpayers to regulate all formalities more easily. This will give the heirs more time and legal certainty before moving fiscal terms. This solution is an expression of the desire for greater consistency of legal and taxation rules, which will surely be appreciated by all those who had to face the complexity of the succession law.

Who will benefit and how much can be saved? Reminder of key amounts

It should be recalled that the taxation on donations and inheritances is charged only after the alleged free amount, the amount of which depends on the degree of kinship. For the nearest household (Group I), which besides includes a ‘zero group’, the free amount presently amounts to 36 120 PLN. For further relatives (Group II), this limit is 27,090 zł, and for non-related persons (Group III) - just PLN 5733. The amount of taxation to be paid on the surplus above the free amount besides depends on the taxation group.

For Group I, rates scope from 3% to 7%, for Group II from 7% to 23%, and for Group III may scope up to 20%. The fresh rules offer a chance to avoid these charges if the deadline has not been met for random reasons. Let us remember that in the event of not submitting a donation, the taxation office may impose sanctioning 20 % tax. The only way to save this situation is to make the alleged "active regret" – voluntary disclosure of donations and payment of taxation at average rates. This allows sanctions to be avoided, although it no longer gives emergence to the right of dismissal. Thanks to the amendment, in many situations "active regret" will no longer be the only option.

Important warning: Do not be surprised! How to paper donations?

Although the amendment of the inheritance and donation taxation act is definitely beneficial to taxpayers, experts agree that peculiar care should proceed and that all donation should be carefully documented. This is peculiarly actual of the transfer of cash. The deficiency of adequate confirmation, for example in the form of a bank transfer or notarial act, may inactive consequence in the failure of relief or imposition of sanctions in the case of taxation checks.

It is always worth having proof that the donation was made legally and transparently. This will bring peace of head and defend you from unpleasant surprises. The draft changes have already reached public consultation. If adopted in its present form, it will enter into force this year. This is surely good news for those who, due to unfortunate coincidences, could not benefit from their right to be released – now they will have a second real chance.