Biznes Fakty
The Ministry of Finance plans to simplify the regulations on inheritance and donation tax
The Ministry of Finance intends to streamline the provisions of the Inheritance and Gift Tax Act, lessen formalities, and reduce administrative hurdles related to their enforcement – as stated in the government’s legislative and programmatic work list.
The proposed changes outlined in the draft amendment to the Inheritance and Gift Tax Act, which was made public on Monday via the Prime Minister’s Chancellery website, indicate that these modifications are part of Pillar VI: „Support for business and deregulation” within the government’s economic strategy for 2025 titled „Poland. A year of breakthrough.” This pillar aims to eliminate unnecessary administrative processes, decrease business expenses, and enhance the transparency of the tax system.
The Ministry of Finance is tasked with drafting the regulations; the government aims to approve the bill in the second quarter of this year.
„The initiative seeks to minimize formalities and reduce administrative obstacles arising from the enforcement of the Inheritance and Gift Tax Act concerning the transfer of assets acquired through inheritance or other free means from immediate family members, as well as to simplify the tax settlement on the acquisition of recurring benefits” – it was noted in the project assumptions.
Consequence of the court’s judgment
As per the proposed changes, the requirement to obtain a certificate from the Head of the Tax Office confirming the exemption from inheritance and gift tax for the acquisition of ownership of items and rights from close relatives, which are subsequently subject to further trade or encumbrance via a notarial deed or an act in which a notary verifies the signatures, will be removed.
The project will also propose a simplification of the rules for assessing the value of recurring, non-chargeable benefits for taxation purposes.
„The necessity to revise the regulations stems from the need to address the implications of the resolution made by a panel of seven judges of the Supreme Administrative Court on March 31, 2025, case reference III FPS 5/24, concerning the taxation of a free annuity agreement established for a fixed duration, with a specified monetary benefit” – it was clarified in the project assumptions.
