Lahjaveroa

Lahjavero is a tax levied on gifts received in Finland. It is payable by the recipient of the gift, not the donor. The tax rate depends on the value of the gift and the relationship between the donor and the recipient. Gifts from close relatives are taxed at lower rates than gifts from unrelated individuals.

There are certain thresholds for taxation. Gifts below a certain value are exempt from lahjavero. For example, gifts from parents to their children are exempt up to a certain amount. If the total value of gifts received from the same donor within a three-year period exceeds the tax-free threshold, lahjavero becomes applicable to the amount exceeding the threshold.

The tax is calculated based on the value of the gift at the time it is received. This value is generally considered to be the market value of the item or asset. If the gift is money, the amount received is the taxable value. For inherited assets that are subsequently gifted, the tax basis for the gift may be affected by any inheritance tax already paid.

The Finnish Tax Administration (Verohallinto) is responsible for administering lahjavero. Recipients of gifts that may be subject to tax are required to file a gift tax return. The tax return must be submitted within a specified period after receiving the gift. Failure to comply with these obligations can result in penalties and interest. The purpose of the tax is to ensure fairness in the tax system by taxing wealth transfer.