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FINANCE LAW FOR 2005 - PART II
In addition to those
taxation changes already detailed in the earlier legal update, there are
also the following other significant alterations:
TAX FREE BAND FOR
HANDICAPPED BENEFICIARIES
This particular tax free
band, applicable to handicapped beneficiaries who inherit from any
benefactor, has been increased from 46,000 Euros to 50,000 Euros.
EXTENSION OF THE
TEMPORARY REDUCTION IN GIFT TAX
The temporary reduction
in gift tax, for certain gifts, of 50% regardless of the age of the donor
has been extended until 31st December 2005 (from 30th June 2005).
INCREASE IN THE
SPECIAL TAX FREE BAND BETWEEN SIBLINGS
This special tax free
band applicable to property passing between siblings who fulfil certain
criteria has been increased from 15,000 Euros to 57,000 Euros. The
criteria to be able to benefit from this tax free band are that the
beneficiary brother or sister is single, widowed or divorced; aged above
50 or not able to work; and domiciled with the deceased for at least five
years prior to the death.
WEALTH TAX
The ceiling for wealth
tax has increased from 720,000 Euros to 732,000 Euros. In addition, from
2006 the ceiling will be revised annually.
07/02/2005
- Legal
update
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