Accounting

Inheritance tax in Poland

Accounting


Inheritance tax in Poland

Acceptance of Polish inheritance - simple or with the benefit of an inventory - carries tax obligation in Poland. Inheritance received constitutes a free estate enlargement which is subject to Succession and Donation Tax of Poland. The members of immediate family obtaining the estate can count on preferences pertaining to the payment charges made to the treasury. It is a rule that such persons are tax exempt. 

Who is an immediate family member?

According to the Inheritance and Gift Tax of Poland Act, the immediate family member are exempted from inheritance tax is: spouse, descendants (children, grandchildren etc.), ascendants (parents, grandparents etc.), stepchildren, siblings, stepfather and stepmother. They are tax exempt regardless of the value of the estate they inherit. 

What is necessary for the immediate beneficiary to do to avoid inheritance tax?

To avoid inheritance tax, the immediate family members of the deceased must within 6 months since the day the tax obligation was created (the 6-months term is counted from the day of the opening of the inheritance or from the time the court verdict in regards to the inheritance acquisition or the notary inheritance deed certification went into effect) submit the form SD-Z2 "Notification of property or property rights acquisition" with the relevant head of the revenue office. The form describes the details pertaining to inheritance or donation such as the degree of relatedness between the testator, percent share of the acquired property and its market value. The duty to notify pertains only to the inheritance and donations received from one person in the last 5 years exceeding the total value of 9,637 zł.

What is the rate of inheritance tax in Poland?

Determining the base and the rate of Polish inheritance tax depends on the specific tax group the testator belongs to and on the so-called minimum tax-exempt amount (tax-free amount, sheer inheritance value that is tax-exempt). Acquiring the inheritance are placed in three tax groups, however, the criteria for the assignment are based on the personal relation of the person acquiring the inheritance to the person from whom the inheritance was acquired. Group I includes: spouse, descendants (children, grandchildren), ascendants (grandparents), stepchildren, sons-in-law, daughters-in-law, siblings, stepfather, stepmother and in-laws; group II: descendants of siblings, siblings of parents, descendants and spouses of stepchildren, spouses of siblings and siblings of spouses, spouses of spouses' siblings, spouses of other descendants; and group III: other persons acquiring inheritance (nonrelated persons and relatives of a distant family belonging to the tax group II.)

Sheer value of inheritance dependent on the payer's given tax group and simultaneously exceeding the following amounts is subject to tax:

1. 9,637 zł –  if the acquirer belongs to tax group I;

2. 7,276 zł – if the acquirer belongs to tax group II;

3. 4,902 zł – if the acquirer belongs to tax group III;

Finally Polish inheritance tax is calculated from the amount exceeding the tax base above the tax exempt amount according with the form below.

The rates of Polish inheritance tax

Surplus in zł

The tax is

Above

Up to

1) from acquirers in group I

 

10,278 zł

3%

10,278 zł

20,556 zł

308 zł 30 gr and 5% from the surplus over 10,278 zł

20,556 zł

 

822 zł 20 gr and 7% from the surplus over 20,556 zł

2) from acquirers in group II

 

10,278 zł

7%

10,278 zł

20,556 zł

719 zł 50 gr and 9% from the surplus over 10,278 zł

20,556 zł

 

1.644 zł 50 gr and 12% from the surplus over 20,556 zł

3) from acquirers in group III

 

10,278 zł

12%

10,278 zł

20,556 zł

1,233 zł 40 gr and 16% the surplus over 10,278 zł

20,556 zł

 

2,877 zł 90 gr and 20% the surplus over 20,556 zł

The taxpayer has 14 days from the day he or she received the decision of the revenue office determining the tax rate (unless it was collected earlier by the notary) to pay the inheritance and donation tax.

 

Contact our inheritance tax lawyers

Please address your enquiries to: info@dudkowiak.com, we will do our best to answer to you e-mail within 24 hours.