Cash from Father: Tax Issues & Donation Exemptions
Here are the 3 most significant conclusions from the text, summarizing how to avoid falling into a donation tax trap:
- Cash “in hand” is risky: Simply handing over cash, even if deposited into the recipient’s personal account, does not qualify for tax exemption.
- Bank transfers are key: The only way to properly document a donation for tax purposes is through a transfer to the recipient’s bank account (payment account, or other account at a bank/credit union/post office).
- Follow the rules or pay the tax: Any deviation from using a proper bank transfer could result in donation tax being due, based on the tax scales provided (which start at 3% for amounts over 11,833 PLN).
