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How to calculate and pay gift taxes in 2019?

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Gift taxes are taxes levied by the State through the tax authorities on donations made. Barnes Côte Basque explains you step by step how to calculate and pay your donation rights.

This tax is usually paid by the beneficiary, the donee, but sometimes the donor pays the tax. Like inheritance taxes, gift taxes are calculated on the basis of a progressive tax scale, after deduction of one or more allowances. Would you like to know how much will be taken from you? If you can be exonerated? Barnes Côte Basque explains you step by step how to calculate and pay your donation rights.

2019 donation rights: exemptions and reductions

Before you take out your calculator, you should make sure that the calculations you are about to make are really necessary. Because the money you have received may be exempt. In other words, that the donation received is not taxed. You can benefit from an exemption if the donation was made by a member of your family in the form of money, or if the donation was made more than 15 years ago. If you find yourself in one of these two cases, good news: you do not have to pay any gift tax.

War disabled and people with disabilities can benefit from 305 € discount on donation rights. A 50% reduction of these fees is also applied if the donor is over 70 years of age, and in some cases when the donation takes the form of corporate or corporate securities.

Donation rights and allowances

If you know the part of donation that comes back in the assets, you will now deduct the allowance (s). The allowance is a fixed sum that does not enter the tax base. Its amount depends on the relationship between the donor and the donee:

  • Spouses and partners of Pacs: € 80,724 
  • Children: € 100,000 
  • Grandchildren: € 31,865 
  • Brothers and sisters: € 15,932 
  • Great-grandchildren: 5,310 € 
  • Nephews and nieces: 7,967 € 
  • Other beneficiaries: No allowance

An additional allowance of € 159,325 combined with other allowances is applied if the donee is a disabled person.

Fee scale

Once the deduction is deducted, the donation rights are calculated. The sum deducted is a percentage of donation after deduction. The scale of donation rights is said to be progressive because the tax rate is proportional to the taxable donation share.

In the case of direct online donations between spouses or partners of Pacs, the tax rate varies from 5% (if the taxable donation share is less than € 8,072) to 45% (if the taxable gift share is greater than € 1,805,677).

For donations between brothers and sisters, the tax rate varies between 35% (taxable donation share below € 24,430) and 45% (share above € 24,430). The tax rate for nieces and nephews is 55%, regardless of the amount of the taxable portion. It amounts to 55% for parents up to the 4th degree, and 60% for all other donees.

Use a simulator to calculate your 2019 donation rights

There are online simulators that calculate gift taxes quickly by taking into account allowances, exemptions, discounts and the tax schedule. These tools make it possible to quickly know the amounts to be paid to the tax administration by receiving a donation. For example:

Payment of donation rights

The donation rights are settled at the time of the declaration of the gift. You can pay the amount claimed by cash, check or bank transfer. In some cases, the delivery of a work of art or a collector's item is accepted as payment (gift to the State).