Inheritance tax in Poland
In Poland , inheritance tax is levied on an acquisition due to death and gift tax is levied on a free gift between the living. As of January 1, 2007, transfers within the immediate family were exempt from tax provided that the transfer was registered with the tax administration. The legal basis is the Inheritance and Gift Tax Act of July 28, 1983. Only acquisitions by natural persons are taxed, acquisitions by legal persons are subject to corporation tax .
Tax bases
The tax is an inheritance tax that arises when the heir accepts the inheritance. The declaration of acceptance of an inheritance is given to the probate court. Irrespective of the heir's own obligation to notify, this informs the responsible tax office.
Scope of tax liability
Acquisitions by Polish citizens and persons who have their permanent residence in Poland are subject to tax, which is assumed for stays of more than 183 days a year. It applies to all property located in Poland and abroad. If only foreign nationals who do not live in Poland are involved both as testator (donor) and as heir (beneficiary), only property located in Poland is taxable, but not movable property located there, including business assets not located in Poland. The purchaser is liable for tax, whereby the donor is also liable for gifts.
The acquired objects, including land, are generally valued at their market value. Debts and inheritance costs are deducted.
Tax brackets and allowances
The acquirers are divided into three tax brackets:
- Tax class I: Spouse, relatives in descending line (children, grandchildren) and ascending line (parents and forefathers), stepchildren, children-in-law, siblings, stepfather or stepmother, in-laws
- Tax class II: descendants of siblings, siblings of parents, siblings and their spouses, siblings of spouses, spouses of siblings of spouses, spouses and other relatives in descending line
- Tax class III: other buyers
Since January 1, 2007, all those named in tax class I, except for the children-in-law and parents-in-law, have been exempt from inheritance and gift tax. The prerequisite for this tax exemption is that the acquisition is reported to the responsible tax office within a month after the certificate of inheritance has been issued.
The following allowances are granted in the tax brackets:
- Tax class I: 9638 PLN (2210 euros)
- Tax class II: 7276 PLN (1670 euros)
- Tax class III: 4902 PLN (1125 euros)
Tax rates
Different tax rates apply to the tax classes, which differ within the classes according to value groups. For each of the three value groups formed, the tax is calculated and added based on the applicable tax rate. The rates can be found in the table below.
| Value group | Tax class I | Tax class II | Tax class III |
|---|---|---|---|
| up to PLN 10,278 | 3% | 7% | 12% |
| 10,279 - 20,556 PLN | 5% | 9% | 16% |
| over PLN 20,556 | 7% | 12% | 20% |
Special benefits and tax reform
Until the tax liability for most relatives in tax class I was lifted, there were a number of other benefits for this group, including complete exemptions, such as when purchasing agricultural, forestry or other business assets. For the legislature, problems with the application of these privileges were the reason to implement the exemption from inheritance tax for the main group of people affected by these privileges. The reason for the exemption was also difficulties in the registration of real estate, which explains the strict reporting obligations, on the fulfillment of which the abolition of the tax depends. However, the tax shortfalls resulting from the changes were so unexpectedly high that a withdrawal of the relief cannot be ruled out.
Avoidance of double taxation
Poland has agreements to avoid double taxation in the area of inheritance tax only with Austria and Hungary . An agreement between the COMECON states in relation to Mongolia and Slovakia is still in force from earlier times . Otherwise, in the event of double taxation, Poland exempts assets located abroad from taxation provided that they are reciprocal, although a progression proviso is made. In the absence of reciprocity, the foreign tax is offset against the domestic tax.
See also
Individual evidence
- ↑ Slawomir Lakomy: Inheritance law in Poland , in: Rembert Süß (Ed.): Inheritance law in Europe , 2nd edition 2008, Zerb Verlag, ISBN 978-3-935079-57-0 , pages 1169 items 96f .; Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act , 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal note 122 (Poland); BDI / vbw / Deloitte series on inheritance tax reform, edition VI, September 24, 2007 , international comparison, competition for locations, p. 11.
- ↑ Based on: Slawomir Lakomy: Erbrecht in Polen , in: Rembert Süß (Ed.): Erbrecht in Europa , 2nd edition 2008, Zerb Verlag, ISBN 978-3-935079-57-0 , pages 1168 item 92
- ↑ On the basis of: Slawomir Lakomy: Erbrecht in Polen , in: Rembert Süß (Ed.): Erbrecht in Europa , 2nd edition 2008, Zerb Verlag, ISBN 978-3-935079-57-0 , pages 1168 Item 94
- ↑ BDI / vbw / Deloitte series on inheritance tax reform, edition VI, September 24, 2007 , international comparison, competition for locations, pages 11 and 12.
- ↑ Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act , 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal note 122 (Poland)
literature
- Slawomir Lakomy: Inheritance law in Poland , in: Rembert Süß (Ed.): Inheritance law in Europe , 2nd edition 2008, Zerb Verlag, ISBN 978-3-935079-57-0 , pages 1145–1170.
- Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act , 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal note 122 (Poland)
