Given that some people have surprised their loved ones with a high-value gift, such as a car, on the occasion of Christmas, it does not hurt to be aware of the rules of gift giving.
One of the most important elements of the tax rule is that spouses do not have to pay tax on expensive gifts bought for each other, writes the Economx. It’s true that it doesn’t hurt if the gifts are signed in front of a notary – in fact, it’s highly recommended for gifts as large as a car – as it makes it easier to prove the origin of the asset in the event of a tax audit or divorce.
As the Hungarian National Chamber of Notaries (MOKK) also pointed out, the law distinguishes between ordinary and unusual gifts – from this point of view, in court practice, HUF 150,000 is considered a watershed.
If the gift contract or the value of the gift exceeds HUF 150,000, even in the absence of a document, according to the relevant decision of the National Tax and Customs Administration (NAV), 18 percent of the value of the gift must be paid to the tax authority in the form of a tax.
A gift received from a brother or direct relative is exempt from tax.
Source: www.vezess.hu
