PSD and CDS want to end the obligation to declare gifts over 500 euros – State Budget

It is one of the first proposals to change the State Budget for 2025 presented by the PSD and CDS-PP. The AD parties, which support the Government, want end the obligation to declare to the IRS income not subject to tax above 500 euros.

The obligation to declare this income has existed since 2005, but both parties consider that there is no “relevance for the purposes of calculating IRPF” and, in addition, they argue, “they imply a duplication of information to the AT (Tax Authority)” since the Tax Authorities already receive this information through third parties, namely banks.

Already note justifying the initiativeexplain that at issue is article 57 of the IRS Code “provides for in paragraph 7 the obligation to report in the income declaration for IRS purposes, income subject to exemption taxes not included and income not subject to IRS, when greater than 500 euros, as well as assets held in countries, territories or regions with a clearly more favorable tax regime.”

However, PSD and CDS recall that “the information elements whose declaration this provision provides for are devoid of any relevance for the purposes of IRS settlement, at the same time that they imply a duplication of information that AT already receives whether through third-party declarations” .

The AD parties consider that this obligation represents “an increase in complexity, taxpayers’ compliance costs and AT’s administrative costs”, without this meaning a “gain or benefit for the control and supervision of the tax situation”reads the note of the proposed change.

PSD and CDS say, on the other hand, that the IRS Code already exempts the submission of a declaration, for example for income from work or pensions of less than 8,500 euros, highlighting that these “declarative obligations are not compatible” with this rule and only contribute to the “complexification of the tax system”.

When you receive a gift or donation above 500 euros, the law requires you to declare this value in model 1 of the Stamp Tax, with exceptions when paying this tax, depending on the degree of kinship. And even if they are not subject to the IRS, they must also be reported to the Tax Authorities.