Transfers of small amounts of money via IRIS have become part of the everyday life for thousands of taxpayers, who use the digital tool to send small amounts to friends or give «allowance» to their children. So the ADE Puts the transactions into the microscope even when the amounts are «small».
«It is good in every metaphor to put an excuse and remember it in the future.», reported taxman Niki Vobiraki, speaking to ERT.
As he noted, there must be clear justification for transferring money. An indication of the cause of the transaction can be particularly useful in the event of future control.
What applies to allowance
If a parent gives his child allowance, the following shall apply: For ordinary costs of living of minors and students up to 25 years old no specific amount of money is set in accordance with the AADE Directive invoked by the tax officer.
These include expenses related to the child's daily life, such as student housing rent, tuition, books, travel and other living needs.
For amounts relating to the allowance of a minor or student up to 25 years old no declaration is required as a donation to myProperty and there is no specific amount of money for the allowance.
The tax-free of EUR 800,000
A crucial role in taxing money donations is played by the degree of affinity between what it gives and what receives the money.
For the first category of kinship, a tax-free limit of EUR 800,000 is provided when donation or parental provision is carried out in the banking way envisaged. This category includes, inter alia, spouses and persons with symbiotic agreement, children and grandparents to grandchildren.
For amounts exceeding the tax-free limit, a tax rate of 10% is applied to the excess amount, according to what was said on the broadcast.
But special attention is needed when the financial donation is not made through a banking system. If the banking process is not followed, a 10% tax from the first euro is levied even between parent and child, as the taxman has explained.
What applies to transfers between brothers
Brothers fall into the second category of kinship and money donations between them are taxed at 20% of the first euro.
Other relationships not included in the first category are also included in the second category, and then there is the third category.
For transfers between friends, known persons and other third parties, the tax is 40% of the first euro, according to the data presented on the show.
