Transfer tax, gift tax, stamp duty

Gift tax

Under the law amendment, if the grantor recognises a non-refundable contribution to the operating and maintenance expenses of a Special Employee Share Ownership Plan ("KMRP") as a tax-deductible expense incurred in the interest of the business for corporate income tax purposes, then this contribution should be exempt from the gift tax liability.

From 2023, the acquisition of assets by a trust asset management foundation as a beneficiary should no longer be subject to the gift tax.

Transfer tax on quid pro quo property transfers

Under the legislation previously in effect, for a quid pro quo transfer of immovable property between related companies to be exempt from the transfer tax, it was sufficient for the transferor to notify ‘Renting and operating of own or leased real estate’ or ‘Sale and purchase of own real estate’ as its main business activity on the date of the transfer.

This has given rise to tax evasion, therefore, by the law amendment, for the transferor to be entitled for transfer tax exemption, at least 50% of his sales turnover should be derived from the above activities. If this condition is not met, then the original transfer tax liability should become payable in the amount increased by 50%.

From 2023 onwards, if CSOK (government family support allowance) is utilised for the extension of a non-owned, e.g. rented, property, no quid pro quo transfer tax should be payable on the property thus acquired.

Stamp duty for state procedures

Under the amendment, if a court decides on the amount of the state duty in a final decision, the tax authority should not issue an additional decision/notification to the person concerned. The court will include the payment method and deadline in its decision. The imposed duty should become due on the 60th day following the date on which the decision becomes legally binding.

From 1 January 2024, the possibility of paying the stamp duty by stamp will be abolished. The value of stamps held and not used by 31 December 2023 should be refundable for a further 5 years, until 31 December 2029.

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This newsletter provides general information and does not constitute tax advice