Gift Tax

Gift Tax is governed by the Act No. 357/1992 Coll., on inheritance, gift and transfer of the real estate tax; is very similar to inheritance tax. Difference is the reason of the tranfer.

Form of cooperation: Exclusive

Tax payer is the transfee. In case of donation abroad, payer is the trensferor. Payer is as entity as physical persons.

Subject of the Tax

Subject of the tax is free-of-charge transfer of the ownership of property. Property means real estate, things as well right. Tax is payable also in case of property received from aborad and vice versa. Subject of the tax is also receiving of property directly abroad or property gained from means received abroad if such object of property is brought to Czech Republic.

On the other hand subject of the tax is not property obtained based on law, e.g. pension or other according to Art. 6 of the Act.

The tax base

Tax is payble at the moment of the free-of-charge transfer of property. Base of the tax is the value of the property estimated based on Expert evaluation in compliance with Act No. 151/1997 Coll, on evalution of property.

. The base can be lowered of any debts or other duties related to the property. More details in Art. 7 of the Act. In case of repetitive fulfillments, longer than 5 years, base is 5 times value of the yearly fulfillment.

In case of donation in two consecutive calendar years between the same persons, base is computed from both; should the tax be paid for donation in year 1, such tax is dicounted from the overhaul computed tax.

Deliberation from tax

Subject to deliberation are donations of movables that belonged to the donator 1 year prior to donation.