Donations in installments? The tax office will also be able to cope with this system
It seems that donations divided into installments, recorded in notarial deeds and made by transfer are a tricky topic. Not for tax offices.
The Director of the National Tax Information (KIS) has issued a binding interpretation that explains when the tax office does not require additional notifications from the recipient, even when transferring money in multiple stages and when recording it in a notarial deed.
The good news is that a cash donation made in installments by a member of the immediate family does not require completing the SD-Z2 form, i.e. reporting each installment received – informs Infor.pl. But the notarial deed is important in this construction!
One SD-Z2 form is enough. Even if the donation is sent by a third party
“At the moment of concluding the contract, i.e. drawing up a notarial deed, the donee acquires the entire subject of the donation. Due to the fact that the donation contract is consensual and not real in nature. The delivery of the subject of the donation, in the light of the definition, is not a condition for its conclusion and remains an indifferent circumstance for its effectiveness.” – results from the tax interpretation.
Tax offices accept periodic transfers of funds in the form of a donation, even if they are physically carried out by a person other than the donor himself – because his assets are still the source of the donation.
Moreover, this form does not create the obligation to repeatedly report each incoming installment to the office. It also turns out that, according to the KIS interpretation, a donation concluded in the form of a notarial deed does not require additional notification to the tax office on the SD-Z2 form.
Transparent money flow. The economic sense of the transaction
As the director of KIS assures, the technical method of money transfer is not important for the tax office if it can be clearly determined who the donation comes from. It is enough that the donor is a person from the immediate family (tax group I), and the funds are transferred to the bank account of the donor in a way that allows their identification.
Officials are simply interested in the actual economic sense of the transaction, although it is also important that the funds are transferred to the recipient’s bank account, which meets the requirement of transparency of money flow.
The tax office emphasizes that a bank transfer is the basic proof of donation.
