May is the month when many parents are occupied with preparing for their children’s First Holy Communion. However, after the ceremony, questions often arise regarding the taxation of received gifts. In light of this, an article featuring insights from Dr. Piotr Sekulski delves into the connection between First Communion gifts and the gift tax.
In the article accessible through this link, you will discover a wealth of intriguing information concerning the tax implications of First Communion gifts.
Can a parent collect money in an envelope and deposit it into a bank account himself?
Piotr Sekulski, PhD
“I’m afraid there might be an issue. The Tax Office tends to adopt a strict approach regarding the exemption conditions, and a recent ruling by the Supreme Administrative Court supports this stance.“
Gifts from grandparents do not need to be reported if they do not exceed PLN 10,434. Up to this amount, the money can be handed in an envelope and doesn’t require a bank transfer. Similar regulations apply when a child receives a gift from an older sibling (which also falls into the zero group).
Piotr Sekulski, PhD
“However, do remember that you must aggregate donations received from a single individual over the course of five years (prior to the year in which you received the most recent one).”
