Gift Tax and its Incorporation into the Income Tax

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F16%3A00010645" target="_blank" >RIV/47813059:19520/16:00010645 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.1007/s11294-016-9593-9" target="_blank" >http://dx.doi.org/10.1007/s11294-016-9593-9</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s11294-016-9593-9" target="_blank" >10.1007/s11294-016-9593-9</a>

Result language

angličtina

Original language name

Gift Tax and its Incorporation into the Income Tax

Original language description

Gift tax is considered to be one of the oldest taxes and is applied in most countries. Gift tax is generally ranked among the taxes in rem. In the Czech Republic, donation of movable and immovable property was subject to the gift tax. Tax rates were progressive and differentiated by kinship. The tax also contained elements of personal taxation, for example use of the progressive tax rate on the amount of donations received from one donor within two years. Gift tax revenues were low in comparison with other taxes while administrative costs on collection were high. Cancelation of gift tax was considered following the example of some EU states. In 2014, based on the government's policy statement, the gift tax was incorporated to the Income Tax Act. This led to introduction of the income tax regime also for gifts that are newly designated as free benefits on the basis of a legal act. The tax rates are uniform and differentiated for legal entities and natural persons. Exemptions for relativ es in the direct line and the side line were maintained. The aim of this paper is to describe the development of the gift tax in the Czech Republic and to evaluate the impact of changes in the approach to the taxation of the amount of tax. A critical literature review of relevant sources was a starting point. Logical methods of analysis and synthesis, induction and deduction were used when we implemented our own research. Based on the simulation model calculations, it was found that the new rules are more favorable to the gift with a value of approximately thirteen million - in the case of natural persons; for legal persons even twice the amount. In some cases, the taxation under the income tax base may be more advantageous, for example when using tax credits or when the tax base is offset by the loss of business.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

International Advances in Economic Research

ISSN

1083-0898

e-ISSN

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Volume of the periodical

22

Issue of the periodical within the volume

3

Country of publishing house

NL - THE KINGDOM OF THE NETHERLANDS

Number of pages

2

Pages from-to

359-360

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-84976315465