Post by account_disabled on Jan 23, 2024 21:00:16 GMT -10
New changes are foreseen for the inheritance of properties. This is a much-discussed issue in recent years, especially regarding the tax that must be paid in case of inheritance. According to the law now in force, donations and inheritances of movable and immovable assets to the first and second heirs will continue to be exempt from the 15% taxation. While the immovable assets inherited or gifted to the heirs beyond the first and second ranks defined in the Civil Code, will not be taxed up to the value of 5 million ALL. Movable assets worth up to ALL 1 million will also be exempt from inheritance or donation tax. According to Dev Inf Real Estate Company's research, the imposition of a band-aid tax on assets after the first and second generation of heirs is a practice that is also followed by some European countries. The new law brings in more detail the way of taxation for inherited immovable and movable assets, while it includes for the first time the concept of removing the tax for donations and inheritances received other than those defined in the first and second order, for property worth up to 5 million ALL for taxpayers and up to 1 million ALL for movable assets.
The law has already entered into force, but its effects start from January 1, 2024. Specifics Job Function Email Database of the Law Article 60 of the Law "On Income Tax" Inheritance, gift and gambling tax Inheritance pursuant to this article includes movable or immovable property or money acquired as a result of the transfer due to death from the deceased person to their heirs, after deducting heritable obligations. Exempted from tax: a) donations and inheritance received from/or between the legal heirs in the first place (Article 360 Civil Code) and second, according to Articles 361 to 363 of the Civil Code, as well as donations and inheritance within the gender relation of sister-brother; b) donations and inheritances received other than those defined in letter "a" up to 5,000,000 ALL for taxpayers for immovable assets and up to 1,000,000 ALL for movable assets for taxpayers; c) the transfer of ownership rights to legal heirs according to articles 361 to 363 of the Civil .
Article 361 In the first instance, the children and the able-bodied or incapacitated spouse are called to inherit, each inheriting in equal shares. When one of the children has died before the testator, has become unworthy to inherit, has renounced the inheritance, or is excluded from the inheritance, his children take his place and when for the above reasons they cannot be heirs, their descendants inherit without limitation. In this case, the part of the parent who does not inherit is divided among the offspring in equal parts. When, apart from the spouse, there are no other heirs of the first order, those of the next order of succession, provided for in Article 363 of this Code, are called to inherit, and when there are none, the heirs of the next order of succession, provided for in Article 364, are called to inherit. of this Code. In any case, the spouse receives 1/2 part of the inheritance.
The law has already entered into force, but its effects start from January 1, 2024. Specifics Job Function Email Database of the Law Article 60 of the Law "On Income Tax" Inheritance, gift and gambling tax Inheritance pursuant to this article includes movable or immovable property or money acquired as a result of the transfer due to death from the deceased person to their heirs, after deducting heritable obligations. Exempted from tax: a) donations and inheritance received from/or between the legal heirs in the first place (Article 360 Civil Code) and second, according to Articles 361 to 363 of the Civil Code, as well as donations and inheritance within the gender relation of sister-brother; b) donations and inheritances received other than those defined in letter "a" up to 5,000,000 ALL for taxpayers for immovable assets and up to 1,000,000 ALL for movable assets for taxpayers; c) the transfer of ownership rights to legal heirs according to articles 361 to 363 of the Civil .
Article 361 In the first instance, the children and the able-bodied or incapacitated spouse are called to inherit, each inheriting in equal shares. When one of the children has died before the testator, has become unworthy to inherit, has renounced the inheritance, or is excluded from the inheritance, his children take his place and when for the above reasons they cannot be heirs, their descendants inherit without limitation. In this case, the part of the parent who does not inherit is divided among the offspring in equal parts. When, apart from the spouse, there are no other heirs of the first order, those of the next order of succession, provided for in Article 363 of this Code, are called to inherit, and when there are none, the heirs of the next order of succession, provided for in Article 364, are called to inherit. of this Code. In any case, the spouse receives 1/2 part of the inheritance.