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Hey yes, although it is your money, you cannot give it to anyone and any way. If you can still dispose of it, you will first need to make a donation declaration which will sometimes require you to pay taxes on said donation.
Yes, it's obviously unfair, but that's how it is. So, if you don't want to be subject to a tax adjustment, here's everything you need to know about donating money.
Est -what you really need to declare each donation ?
Be aware that you will sometimes have to pay tax on a donation. So, the tax administration wants to know what you do with your money, and potentially who you give it to, even if it's to someone in your family. Thus, each donation must be declared, even if this will not systematically correspond to the payment of tax.
To do this, you will need to go to the government website which offers a new donation declaration service, which then automatically calculates whether you have any duties to pay. While the service seems relatively practical, I think many of us would have done without it.
How are the duties to be paid on a donation& ;nbsp;?
Be careful, hold on tight, because the system is getting weirder and weirder. In fact, depending on your relationship with the person who will receive your donation, you will have to pay more or less taxes on your donation. Thus, the scale is different depending on the link, which is as follows: a parent who gives to his children is a 1st degree link, grandparents who would give to their grandchildren or a gift between brothers and sisters corresponds to a 2nd degree bond, finally, an uncle/aunt towards his nephew/niece corresponds to the 3rd degree. You are still following ?
Thus, a tax reduction will be made according to the scale indicated, which can also change if the person is disabled. If you have managed to understand all of this, congratulations, for the others, the simplest thing is still to do a simulation using the link given previously.
How much can you give without paying taxes ?
Each donation gives rise to a declaration ? Fortunately not always, just imagine how restrictive it could be if every Christmas Grandma Micheline had to declare the 20 euros she gives to each of her grandchildren ? Well, to avoid tax declarations, you just have to stay within the limits of present usage. What is it?? Simply a gift that does not need to be declared. According to article 852 of the Civil Code: “the character of a customary present is assessed on the date it is granted and taking into account the wealth of the giver”. This means that the customary gift has a maximum ceiling which varies depending on the extent of the generous donor's assets.
Case law establishes that the customary gift must represent less than 2.5% of the donor's assets, which depending on whether your father is Bernard Arnaud or rather Benjamin Castaldi, makes a quite considerable difference. The donation can be made by any means, whether in cash, by bank transfer or by check. To avoid any problems with the tax authorities, you will have to avoid making these customary gifts without any particular reason.
What are the risks of not declaring your donations ?
Please note that the best thing to do is to declare your donations which fall outside the scope of the usual gift. Although the expression may seem a little strong, you should still know that an undeclared donation that does not fall within the framework of a customary gift can be considered as fraud tax. This can lead to a tax adjustment, but also to criminal sanctions if there is prosecution by the tax administration. Prosecutions can be initiated up to 6 years after the undeclared donation, and the sanctions range up to a fine of 500,000 euros and 5 years of imprisonment. Of course, this kind of extreme case must be very rare in a normal family setting.
- It is necessary to declare any significant donation on the dedicated page of the government website.
- The only donations that are not necessary to declare are customary gifts, which fall within a very specific framework such that they must not represent more than 2% of the donor's assets.
- Failing to declare a donation that does not fall within the scope of this customary gift may give rise to prosecution for tax fraud.
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