Gifts given on various occasions are regarded as donations under tax law. Therefore, gifts received for First Communion should be assessed in accordance with the provisions of the Inheritance and Gift Tax Act. – It cannot be unequivocally stated that we do not have to report or pay tax on any First Communion gifts. Whether we should settle the received First Communion gifts will be determined by their value, as well as the degree of kinship between the donor and the recipient.
Under the Inheritance and Gift Tax Act, there are specified amounts up to which donations are not taxed. Gifts usually received on the occasion of First Communion do not exceed the statutory limits, so they are not subject to tax. However, we cannot treat this as a rule, which is why it is worth verifying the gift from each guest individually – advises Monika Piątkowska, a tax adviser at e-pity.pl.
How much can you receive tax-free? Limits in the three tax groups
– Under the Inheritance and Gift Tax Act, if the value of payments from a person unrelated to us, belonging to tax group III, does not exceed PLN 5,733 (the tax-free amount for donations) over a period of 5 years, no tax is charged on that donation. In the case of tax group II, which includes, for example, our parents’ siblings, our sister’s children and our brother’s grandchildren, the amount is PLN 27,090.
On the other hand, from our close relatives, such as a spouse, children, parents, stepchild, son-in-law, daughter-in-law, siblings, stepfather, stepmother or parents-in-law—that is, from tax group I—we may receive PLN 36,120 without reporting it. These amounts are calculated cumulatively over a 5-year period. Therefore, if we receive donations from a given person from time to time, we should add up their value and, if the limit is exceeded, report the donation to the tax authorities. – points out Monika Piątkowska of e-pity.pl.
A special case concerns gifts received from immediate family, the so-called zero tax group (e.g. children, parents and grandparents), which, subject to certain conditions, are not taxed regardless of the value of the donation.
– We must also remember that in the case of First Communion, the recipient is the child, and it is the child’s relationships with individual people that should be verified. If it is necessary to report the donation received, the parents or legal guardians submit the declaration to the tax authorities on the child’s behalf – adds Monika Piątkowska.