Gifts for children
The most anticipated holidays of the year are approaching - Catholic Christmas and New Year. You are in a great mood and are thinking about making a surprise for your children - donating money for a brand new car or sofa.
We remind you that this year you can transfer your son or daughter as much as 6604 euros, which will not be taxed. The fact is that in 2021, due to the coronavirus crisis, the non-taxable gift temporarily increased by 1.000 euros. More details here.
The tax exemption for the cash presentation can only be used once a year. If you have already donated bills, for example, in January, taking advantage of the tax exemption, then you cannot do it again in November or December - you will have to wait until 2022 in order not to pay tax.
If you want to give your child more than the non-taxable rule, then you better divide the amount by two years. For example, you can donate one part at the end of December, and the other at the beginning of January. The break will be minimal, and the savings are substantial! The maximum non-taxable amount is about 12.200 euros (6.600 in December + 5.600 in January).
One-time present
If your son / daughter is between the ages of 18 and 40, then you are entitled to a one-time non-taxable gift of up to € 26.881. And if the child is going to improve his living conditions - buy a house or pay off housing debts - then you can transfer as much as 105.302 euros to his account!
Tax rate
If you give more, then in the case of an amount up to 128.750 euros, then your child will pay 10% tax. If more than 128.750, then this amount will be taxed at the rate of 20%.
Gifts for grandchildren
A monetary gift to grandchildren in 2021 is tax-free if the amount is up to € 3.244.
As in the case of children, due to the coronavirus crisis, the amount of the non-taxable gift was temporarily increased by 1000 euros. If you want to please your grandson with an amount that exceeds 3.244 euros, then you better donate part in December and part in January. The maximum amount of a non-taxable gift at the junction of two years (2021 and 2022) will be € 5.480 (€ 3.240 in December + € 2.240 in January).
Tax rate
If you donate more than the exempt amount, then anything that exceeds it is taxed at a rate of 18%. Amounts above 128.000 are taxed at a rate of 36%.
Tax return
Served until March 1, 2022. If you have to pay tax on a gift, then you must file a special tax return for gifts (schenkbelasting). This can be done online at the MijnBelastingdienst website. The return for the previous year must be submitted within two months of the new year.
If you were presented with an amount that does not exceed the amount that falls under the exemption, then you do not need to file a declaration.
If you have any questions related to donation, then feel free to contact us - we will definitely answer them!
Publication Date: 18.11.2021
