Biznes Fakty
Inheritance Tax. Amendment to the Act Signed by the President
On Friday, President Andrzej Duda enacted changes to the Inheritance and Gift Tax Act. Notably, it eliminates the requirement to present a tax exemption certificate from the tax office during the notarial sale of an inheritance or gift from immediate relatives.
The purpose of the amendment is to lessen bureaucratic requirements when executing a notarial agreement for the transfer or encumbrance of property or rights that the seller obtained without charge, such as through inheritance. Currently, to finalize such an agreement, the seller must provide a certificate from the tax office indicating that the acquisition is exempt from taxes, that the owed tax has been settled, or that the tax obligation has lapsed due to the statute of limitations.
The amendment specifies that there is no requirement to secure a certificate from the tax office if the sale pertains to property received from immediate family members, as it is not subject to inheritance and gift tax.
The condition for this exemption is that the acquisition must be reported as a gift to the appropriate tax office head within 6 months from the date the tax liability originated or – in the case of inheritance – from the date the court ruling confirming the inheritance acquisition becomes final, along with documentation of the receipt of funds in cases specified by law.
Tax Simplifications
Additionally, the amendment introduces provisions that will facilitate a thorough valuation of a privately established annuity. This will enable both the donor and the recipient to submit tax returns just once, with the tax to be paid once as well. Currently, both parties must file such returns with each annuity payment, which effectively occurs every month.
The modifications in this area aim to simplify tax settlements regarding the acquisition of rights to benefits. According to the new rules, if the acquisition pertains to rights to benefits, the tax obligation will arise when they are established (if the value of the benefits is, among other things, defined as of the date of their creation) or upon the execution of individual benefits.
The amendment also stipulates that for determining the value of benefits, the total value will be considered for the period for which they were created (if they are for an indefinite period, then for 10 years), and if their value is determined as of the date of their establishment, it will be for the entire duration of the obligation to provide the benefits or the value of individual benefits. Furthermore, with the taxpayer’s consent, the head of the tax office may substantiate the value of benefits for the period they were established or for a period of 10 years if established indefinitely.
In principle, the Act is set to take effect 14 days following its publication.
