Schenkungsteuerrecht

Schenkungsteuerrecht refers to the legal framework governing gift tax in Germany. It is regulated by the Erbschaftsteuer- und Schenkungsteuergesetz (ErbStG). This law stipulates that the transfer of assets through a gift is subject to taxation. The primary purpose is to tax wealth transfers that occur during a person's lifetime, similar to how inheritance tax applies to wealth transferred after death.

The tax is levied on the recipient of the gift, known as the beneficiary, rather than the donor. The taxable amount is the value of the gifted asset at the time of the gift. Various exemptions and allowances exist to mitigate the tax burden. For instance, there are significant personal allowances that increase with the degree of kinship between the donor and the beneficiary. Close relatives like spouses and children benefit from higher exemptions than unrelated individuals.

The tax rates are progressive and depend on the value of the taxable gift and the tax class, which is determined by the relationship between the donor and the beneficiary. Tax classes I, II, and III are defined in the ErbStG, with tax class I having the lowest rates and tax class III the highest. Certain assets, such as business assets or private residential property used by the donor, may also be subject to specific valuation rules or partial exemptions under certain conditions. The goal of the Schenkungsteuerrecht is to ensure a fairer distribution of wealth and to tax significant lifetime transfers of assets.