The goods received as a donation, including the money, are not a source of income that is taxed. However, the person who donates money will pay income tax if the sums donated in a fiscal period exceed the taxable income earned in the period. A tax will be charged only on the sum that exceeds the taxable income. Lawyer Oleg Efrim has told IPN that this rule does not apply to donations made to relatives of the first degree and to philanthropic donations or sponsorships.
According to the lawyer, any type of goods that a person owns can be donated, including claim rights, like the right to seek the repayment of a loan. In case of donations of goods that are limited in the civil circuit, such as arms, the donation is made only if particular special conditions stipulated by the law are met. One can also make a donations by imposing conditions, such as the fulfillment of a task or the achievement of a goal. For example, the receiving of a sum of money as a gift on condition that a part of this money is used to pay studies at the faculty or the donation of real estate on particular conditions, like opening and running of a public library.
Oleg Efrim said the donors should be fully legally competent and should own the donated goods. The Civil Code bans the donation to minors or persons under protection, except for insignificant donations. Also, it is not allowed donating goods to owners, managers or workers of medical, education, social assistance and other types of institutions by persons who are in these institutions or by their relatives up to the fourth degree inclusive. Also, donations of real estate between legal entities for lucrative purposes are not allowed, as is the signing of a donation agreement for the transfer of property after the death of the one who makes the donation or of an agreement that envisions the transfer of property in parts or in full without specifying the goods that are to be handed over.
The lawyer noted the donation contract is considered signed when the goods are handed over. When real estate or other goods are donated, for whose sale the law asks for an authentic form, the donation agreement should be authenticated by a notary. Similarly, the law asks for an authentic form for donation agreements that envision the transfer of goods in the future. For a donation to be made, the persons who are to receive the donation must give their consent.
The donation agreement can be terminated only when the one who benefitted from the donation commits an illegality towards the donor or towards a relative of this or when this makes an attempt on the life of the donor or a relative of this. The donation can be also recalled when the one who received the donation groundlessly refuses to offer the donor the owed support. The person who made the donation can ask for the donated goods to be returned if this cannot appropriately maintain himself or the persons he is obliged to maintain. In this case, one can recall the goods that the receiver still owns. Also, the donation can be annulled if the donor made it while being presumably lethally ill, but later recovered.
According to Oleg Efrim, when the donation is made, the beneficiary becomes the owner of the received goods and can decide the fate of these, including can sell them. The authentication by a notary is mandatory when real estate and other goods specified by law are donated. The costs of notary services for the sale of each donated asset is set by the notary depending on its value and type.
