The legacy of inheritance and gifts - abolished by Fidesz
In 10 years, it left more than 400 billion forints in the pockets of families
👉Furthermore, since 8 July 2020, inheritances and gifts between siblings, regardless of value, have been duty-free. Previously, only the inheritances and gifts of direct relatives, i.e. parents and children, as well as widows and spouses, were exempt from the tax.
It is always a great tragedy to lose one of our close relatives, but there is a political side in Hungary, namely the left, who, when they ruled, only exacerbated this tragedy.
Before 2010, during the rule of Gyurcsány, inheritance and gifts were also taxable. Translating the example into an ordinary example: one member of the elderly couple died, the widowed party had to pay tax on the common property. Assuming that their common house worth HUF 30 million was owned in a 1 / 2-1 / 2 proportion, it was obliged to pay a 9% tax to the tax authority after HUF 15 million, ie the Gyurcsánys had improved the tragedy, the funeral expenses and the lost pension. With a check of HUF 1,350,000. That was the death tax.
Inheritance and gift between parent-child, grandparent-grandson, and sibling were also taxable. The Gyurcsánys rummaged in the pockets of their families and, for the second time, taxed homes purchased with bitter work from taxed income, forcing many people to borrow or sell real estate.
Think about how much harder our lives would be if the left who were now campaigning for death were to govern today. There would be no family support, no home creation allowance, the overhead price in Hungary would be the highest in the whole union, significantly more taxes would be deducted from our salary, and maybe we would lose one of our family members due to a virus or something else. You can read more about the inheritance tribute in the articles marked at the source.
👉Other winds will blow after 2010!
In a few months, the latest tax rule, which has been in place since July, could leave hundreds of millions of forints in families, the Deputy Minister of Finance told our newspaper. András Tállai reminded him that since the summer, no gift or inheritance tax has to be paid on property movements between brothers.
- There are important, special cases in life in which the state should not intervene when there is no place to impose a tax or duty obligation. The division of family wealth is typically like this, the deputy finance minister told our paper when asked about the impact of the new tax rule, which came into force in the summer. Since July, the state has been charging neither inheritance nor gift tax on property movements between siblings.
In addition, the gifted brother does not have to report the gift to the tax authorities.
Secretary of State András Tállai indicated that according to the calculations of the Ministry, the new passage could leave four billion forints a year for families, so this year even hundreds of millions of items could remain with the brothers who arranged the fate of their property. "The change in the rules in July could mean tens of thousands of families a year," the deputy minister said. He added that the most important detail is that for the purposes of the tax passport, siblings are those who have at least one common parent or adoptive parent.
The Secretary of State recalled that this was not the first amendment to the tax rules to facilitate the free transfer of family property.
Since an amendment in 2010, property has been able to move freely, free of charge, between relatives in the ascending line, meaning that family values can pass from parent to child and from grandparent to grandchild without obligation to pay. Two years later, the legislature decided to extend the exemption to the affairs of spouses. The tax has since not been considered for gifts, inheritances or remunerated transfers. - The current preferential rules leave about forty billion forints a year for families, which is supplemented by the new provision, which can mean a total of four billion forints for families.
The Secretary of State detailed. He believed that in addition to the tax rules, several elements of the tax system protect the financial situation of families and protect the security of their property. According to the Deputy Minister, this includes one of the lowest personal income taxes in Europe, a tax and contribution rebate for families and a sixty thousand forint tax rebate for those entering into their first marriage. - Mention should also be made of the rule guaranteeing lifelong PIT exemption for mothers with four or more children, - said András Tállai, then summed up: the tax system established since 2010 seeks to help strengthen society financially.
"The government creates concessions even in times of crisis, and always says no to population restrictions," the secretary of state said.