The donations in the form of money as from January 1, 2020 will be taxed within the limits in which they exceed the total amount of incomes earned in the course of the year, such as salaries, dividends, scholarships and pensions. Only the taxable income was taken into account until this year. The tax regime for donations of goods remained the same.

In a response for IPN, the Ministry of Finance said that in accordance with the Tax Code, the property donated by a person is considered sold property. The income for tax purposes is assessed at its highest value of the adjusted value basis of the donated property or at its market price at the moment of donation.

For example, when a car is donated, the adjusted value basis is the purchase price from which the value basis is deducted. If the result is positive, the person must fill out the tax return and include 50% of the positive result in the taxable income. These norms started to be applied on January 1, 2020.

The capital gain or loss is not recognized for tax purposes when a donation contract between relatives of the first degree, including between spouses, is signed.