giving Money 2 a friend

D

djdiablo

Guest
I'm just thinking if somebody could help me...
I'm giving an irish friend 2,700 eros, the thing is im a Polish person living in Poland and he is irish living in Ireland...

the transfer of money was in poland. From Polish acc to another Polish acc.

Im not pretty sure how it should be treated for tax purposes.

i know now she will have to pay Gift Tax in Poland. And that's fine, but how should it be treated in Ireland?
How is the tax calculated in Ireland in that case? Is it just a sum of
all taxes paid as well in ireland and in poland? Or is there a special
way of calculating that?

Would it have to be included in tax return? Is the amount treated as
income or just as Gift exempted from tax purposes (as the amount doesn't exceed 3000 euros)?

Could anyone help me in that matter?
 
Are you gifting the money? no payback? not payment for goods or services?

Is your friend tax resident in Ireland

just read your other post -- It sounds like you are just repaying a loan -- No issue for tax in that case
 
Yes, I'm a Polish resident and I'm giving the money 2 irish resident.

wat about tax return? Coz the tax will be paid by him in Poland. Would it be added to his income? Because of the fact that he paid the gift tax in poland?

Plus this is a different situation with a different person, that's why i wrote 2 posts not one.
 
someone else might correct me but he can fill out form IT38-there will be no tax payable
 
As the amount is less than 3000 then there will be no Gift Tax payable on the money here in Ireland. You can receive a small gift of €3,000 in each year without any tax being due on it. This will only be the situation where your friend has not received any other money fomr anyone else. There is no requirment to complete any forms.
 
The small gift exemption means any gift of less than €3000 during the tax year, from any number of persons, is exempt from CAT. So you could have 10 gifts of €2000 ( from different donors) and no gift tax due.
 
Well, I understand she wont have to pay any addidtional tax on it in Ireland. But because the tax will be paid in Poland shouldn't it be shown somehow in her yearly tax return?

Plus if the tax was paid in Poland and i.e. she did not use all of her tax credits in Ireland would it be possible to get tax back (on the credits that weren't used before)?
 
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