When to pay tax on gift

Most people believe that all rights to the gifted property belong to the person who accepts the gift. This is due to the negative attitude of many taxpayers to the tax on the donation of property. However, most of them have a vague idea of what this gift tax is. This article will provide the necessary information regarding this tax.

The tax on donation is officially confirmed by the civil code of many CIS countries, however in each country it is presented in different ways. Let's consider in which cases it is necessary to pay tax on the donation of property, and in which - not necessarily, relying mainly on the legislation of the Russian Federation.

According to the Civil Code, in accordance with the gift agreement, the donor donates the property to the person he is awarded with. This can be money, vehicles, securities or real estate.

A contract of donation of movable property may be drafted orally. If the gift passes real estate, then the donor and the gifted are required to draw up a contract in writing, there are no other options. In accordance with the Civil Code of the Russian Federation, an agreement on the donation of money by a legal entity that exceeds the non-taxable level of a minimum wage by more than five times can also be drafted in writing. In Ukraine, in such a case, a written contract must be concluded if the gift exceeds the amount of 850 hryvnia (2,600 rubles) in value, this rule also applies to individual donors who also have to pay a gift tax. In addition, a gift agreement may be drawn up in writing, stating that the donor will transfer certain property in the future for use. In the article of the Civil Code of the Russian Federation on the form of the donation contract, a contract drawn up orally in these cases is defined as "insignificant". A gift contract, whether oral or written, can be recognized as valid if the donated property is obtained legally. Responsible party for the payment of tax on the donation of property is the recipient.

The tax on the gift is levied on the property that is transferred under a written contract. However, not in every case will have to pay tax on the donation of property. In case the gifted person is not a relative of the apartment giver, the first is obliged to pay the state tax on the gift tax - 13% of the value of the received real estate. If the gifted person is not a citizen of the Russian Federation, the tax on the gifted is 30% of the value of the given property. The amount of tax on the donated is determined by the market value of the object or the price specified in the contract. Thus, the tax on the gift is borne by a citizen who is not a relative of the donor. If the gift is for the close relatives of the donor, they are free from paying this tax. Pay only for the services of a notary and state registration of the document.

Many elderly people who wish to transfer persons who are not their relatives to use (for example, there are no relatives), certain real estate objects, whether it is a suburban area, an apartment or a house, face the question: what is more profitable for the gifted person and for them personally - to make a will or Gifted? In the latter case, the gifted person immediately enters into the rights of the owner of the property, but the tax on the property will have to be paid. At registration of the will it is necessary to consider, that it will come into force after the death of the donor, and also the donor can change it during lifetime; When the testator lives, the inheriting property does not have the right to use it.