Gift tax applies to gifts received in Poland, as in other countries. Tax rates depend on the relationship category, and gift taxation is generally limited. More on this below.

What determines the gift tax rate?

Inheritance and gift tax are determined based on the recipient's tax bracket. These brackets are determined based on the recipient's degree of relationship or status to the donor.

Tax bracket I includes spouses, ascendants (parents, grandparents, great-grandparents), descendants (children, grandchildren, great-grandchildren), stepsons, stepparents, siblings, parents-in-law, sons-in-law, and daughters-in-law.

Tax Category II includes descendants of siblings (e.g., a sister's children, a brother's grandchildren), siblings of parents (e.g., aunts, uncles), descendants and spouses of stepchildren, spouses of siblings and spouses of siblings, spouses of spouses' siblings, and spouses of other descendants (e.g., a granddaughter's husband). Descendants also include adopted children and their descendants. Stepparents are also considered parents.

Tax Category III includes other acquirers.

In addition, there is a "nil" tax bracket, which includes immediate family members such as spouses, descendants, ancestors, stepchildren, siblings, and stepparents. Being in this bracket allows for a full tax exemption, subject to certain requirements, as described below.

What gift amounts are exempt?

Currently, the tax-exempt amounts for gifts are set at the following levels:

• PLN 36,120 for tax group I,
• PLN 27,090 for tax group II,
• PLN 5,733 for tax group III.

What are the conditions for declaring a gift?

If the gift amount exceeds the tax-exempt amount, the value of such a gift must be declared to the tax office. If the tax-exempt amount is exceeded, tax is levied.

The tax-exempt amount includes all donations received from the same person over the past five years. When calculating the tax-exempt amount, the value of property and property rights acquired from the same person (e.g., as a gift or through the gratuitous termination of joint ownership) in the five years preceding the year of the last gift is added to the value of the gift received.

When does tax liability arise?

Inheritance and gift tax liability arises at different times depending on the method of property acquisition. In the case of a gift, tax liability arises when the donor files a declaration in the form of a notarial deed, and in the case of an agreement concluded without the established form, it arises when the promised benefit is fulfilled.

What form is submitted when declaring a gift?

Form SD-Z2 (notification of acquisition of property or property rights) is submitted. The taxpayer has six months from the date the tax liability arises to report the gift.