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Are wedding gifts tax exempt?

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Received gifts, including so-called envelopes, are treated as donations and, provided they do not exceed the designated thresholds, they do not have to be reported to the tax authorities – indicated e-pity.pl expert Monika Piątkowska. She pointed out that the amount received is counted over a period of five years.

The expert pointed out that, for example, wedding gifts or received cash are treated as a donation. This means that, based on the Act on inheritance tax and donations – as long as their value does not exceed certain thresholds – do not have to be reported to the tax authorities.

Tax-free allowance depends on the degree of relationship with the donor, she noted.

Tax groups

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In the case of tax group III, i.e. strangers, the tax-free amount is PLN 5,733 over a 5-year period – Piątkowska informed. In turn, for group II (e.g. siblings of our parents), the amount is PLN 27,090, and for group I (e.g. spouse, children, parents) – PLN 36,120.

She noted, however, that, for example, when regularly receiving gifts from a given person, the recipient should add up their value and, if the limit is exceeded, report the gift to the tax authorities. Similarly, the tax rate depends on the degree of relationship and the amount received.

If we want the gift we receive – regardless of the amount – not to be subject to tax within the so-called zero group, appropriate conditions must be met – the expert noted.

The zero group includes the immediate family, e.g. children, parents, grandparents, siblings, stepfather, stepmother, etc. The condition for tax exemption is to inform the tax office about the donation within 6 months, and to transfer it to a bank account or by postal order to the address of the recipient.

A gift given in the form of cash will not be exempt from tax; in the event of failure to meet the imposed requirements, persons are treated as group I – emphasized Monika Piątkowska.

Main image source: Shutterstock

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