Gift contract tax

One of the frequent questions that gift recipients encounter is whether gift tax is payable? The law on property taxes stipulates that gift and inheritance tax must be paid. It is a special tax provided by law and should not be equated with the tax of the transfer of absolute rights, although these taxes have some similarities. According to the law, the taxpayer is the recipient of the gift. The tax base is determined according to the market value of the thing that is the subject of the gift. The tax rate depends on whether the recipient is related to the donor. Depending on the degree of kinship, the tax rate will also depend, that is, the amount of the tax liability.
Obligees who, in relation to the donor, are in the second line of succession according to the legal order of inheritance, pay inheritance and gift tax at a rate of 1.5%.
Taxpayers who, in relation to the donor, are in the third and further line of succession, taxpayers who are not related to the donor, pay inheritance and gift tax at a rate of 2.5%.
Obligees who are in the first line of succession in relation to the donor (example: children and spouse) are exempt from paying gift tax. This essentially means that a gift made to a child or a spouse will not be subject to taxation.