A recent ruling from the Court of Cassation clarified that no tax is due on small donations between parents and children made by a taxpayer in favor of their loved ones. But the judges made a distinction between formal and informal donations. THE Corriere della Sera explains that formal donations are those recorded in public records, informal donations are not. And these are donations of money: for example via a bank transfer from a parent or loved one. Goods can also be donated this way. The purchase of a good on behalf of a third party also constitutes an indirect gift.
Taxes
Taxes on gifts vary depending on who receives them. The spouse and children are required to pay 4% of the value beyond the deductible of one million euros. The brothers must pay 6% on the value of assets exceeding 100 thousand euros. Same amount, but without deductible, for relatives beyond the third degree. For other people, the percentage rises to 8%. The Supreme Court thus corrects the Revenue Agency, which had interpreted the consolidated law on inheritance by considering all taxable donations. For judges, the generalized obligation does not exist. Firstly because those who give and those who receive are not obliged to register. The second is that the administration can only carry out investigations in certain cases. That is to say if the donation is declared within the framework of a tax contribution and when it has an amount greater than 180,000 euros.
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