Instructions for completing a gift tax return form

In sections I, II, IV and VII you fill in information such as the personal details of the donor and the recipient, including their personal ID. If Finnish personal IDs do not exist, enter the individuals’ dates of birth in the dd.mm.yyyy format.

I Beneficiary

Enter the details of the beneficiary here.

Give the first name and the surname of the beneficiary.  If the beneficiary is not a natural person, give the name of a company or a corporate entity, for example.

Provide a telephone number in international format (example: +358 40123 4567).

Tax bracket:

Check tax bracket 1. if you are:

• the spouse of the donor. Persons who are married or in a registered civil partnership are considered spouses. Domestic partners are also considered spouses if they have previously been married to each other and have or have had a child together.
• related to the donor in direct ascending or descending line, such as a child, a grandchild, a parent or a grandparent. (Adoptive children and parents are considered equal to biological relatives in taxation.)
• related to the donor’s spouse (or former spouse) in direct descending line, such as a child or grandchild.

Check tax bracket 2. if you:

• have received the gift from a more distant relative (such as a sibling, a cousin, an uncle, an aunt or a parent-in-law ) or someone outside the family.
• are completing the form on behalf of a company or other corporate entity (i.e. the beneficiary is a corporate entity).

II Donor

Enter the details of the donor here. If the donor has no Finnish personal identity code, enter his or her date of birth. The format is: dd.mm.yyyy.

If there are several donors, you need to file a separate gift tax return form for each gift and donor.

III Information on the gift

Enter the date on which you received the gift.

Check the box if the application of a preliminary ruling has previously been requested regarding the gift tax for the gift you have received, and you demand that the preliminary ruling be applied in the gift taxation.

If you have paid foreign gift tax on the gift to another country, enter the amount of tax here.  Enclose a photocopy of the tax decision from the tax authority of the country in question.

IV The rights of possession, of profit or other rights to the gift have been retained

Check the box if the deed of gift or another conveyance states that the donor has retained the rights of possession, of profit or any other rights over the assets. Also check the box if the donor has given the rights to someone else.

Check the "the rights of possession" box if:

• The rights the donor retains are rights of possession
• The rights the donor retains are usufructual rights

Check the "the rights of profit or other rights" box if:

• The rights the donor retains are profit rights. This means that the donor continues to receive e.g. rental income for the donated apartment, house, other dwelling, or that the donor continues to receive dividends on the donated corporate stocks, etc.
• The right that the donor retains is the donor’s right to continue living in the donated apartment, house or other dwelling.

If a person other than the donor has already owned the rights of possession or other rights and the situation does not change after the donation, complete the information in section IV accordingly, i.e. indicate the person’s rights as they had been before the donation.

Tick the box for either lifelong or terminable rights. If the rights are terminable, enter the cease date of the rights.

Tick a box to determine for whom the rights are retained. If the rights have been retained for a person other than the donor or the donor and his or her spouse jointly, enter the name and the personal ID of the other beneficiary.

If the retained rights only fall upon some of the assets you received as a gift, tick the box "Only part of the gift is subject to the retained rights". Enclose a photocopy of the deed of gift or of another conveyance.

If you demand that the value of the retained right is calculated based on actual annual profits (for example, on the basis of true net profits per year from renting an apartment to a tenant), enclose a free-form account to indicate the amount of such profits.

V Compensation you have paid (purchase price)

Enter the purchase price determined as compensation, or the fair market value of any assets you have given in exchange.

As compensation, do not enter an apartment’s housing company loan that the beneficiary will take over. Instead, take account of the unpaid loan by subtracting it when you indicate the value of the assets.

VI Other gifts under €5,000 that you have received from the donor within the past three years

Complete this section if within the past three years the donor has given you gifts under the total value of €5,000 and for which you have not filed a gift tax return.

If the previous gifts exceed the total value of €5,000, don’t fill in the information here, but instead file a separate gift tax return (if you have not done so earlier).

VII Recipient of shared gift

For example, it is not a shared gift if parents donate an apartment to their two children in the same deed of gift, so that each child gets an equal share of the apartment (i.e. half of it). In such a case, these are considered two separate gifts.

Only complete this section if the deed of gift or another conveyance states that the assets are donated to you and another person jointly. Only then is it a shared gift.

For a shared gift, only file one gift tax return per donor.

For a shared gift, a joint tax calculated based on the total value of the gift is imposed on the beneficiaries. The beneficiaries are jointly responsible for paying the tax.

Tick the correct tax bracket according to the relationship between the recipient of the shared gift and the donor. For more detailed instructions, see section I (Beneficiary).

VIII Tax reliefs in change-of-generation situations

You can get a tax relief based on a change-of-generation situation only if the gift includes a farm or a company and you continue its operations.

Tick the box if you seek a relief of the gift tax based on the provision regarding tax reliefs in change-of-generation situations.

Tick the box if you also seek extended payment time for the gift tax.

Enclose a separate account of how you will continue to operate business, agriculture or agriculture and forestry with the assets you received as a gift.

Date and signature

Don't forget to sign the gift tax return form. The gift tax return of a beneficiary under 18 years of age must be signed by his or her guardian or another trustee.

The gift tax return should only have one signature. If there are several beneficiaries, each must complete and sign their own gift tax return.

In case of a shared gift, the tax return should only be signed by the person filing the return.

If the gift tax return is completed by a person authorized by the beneficiary, the return should also be signed by the authorized representative.

Page two of the form

Enter identification information at the start of the page. Such information includes the personal ID or Business ID of the beneficiary and of the donor, and the date of receiving the gift.

If there are more asset items than the form holds, you can complete as many inserts as you need.

IX Received assets

Enter the total value of the assets you have received with maximum of two decimals.

Do not subtract, for instance, the value of the rights of possession or any compensation you have paid.

Although gift tax is only imposed on gifts over €5,000, you are not to subtract this amount either. The €5,000 limit is taken into account in the gift tax scale.

Money

If you have received money or bank deposits as a gift, enter the amount in euros.

Insurance benefit

If you have received an insurance benefit based on a beneficiary clause, enter the amount of the benefit in euros. Subtract from the benefit any portion treated as taxable income in income taxation.

Forgoing the rights of possession

Tick the box if the donor has had the rights of possession over assets you have previously received, and he or she has now extended a gift by forgoing these rights.

Also fill in more detailed information in the correct section (e.g. “Shares in a housing company” or “Property or parcel of land”) according to which type of property was subject to the rights of possession.

Shares in a housing company

If you have received shares of a housing company, giving you the rights to an apartment as a gift (or shares which give you the rights to a specific parking space etc.), enter the details of the housing company and the apartment. You must fill in all sections.

Enter your fractional share of the apartment and the fair market value of the share on the date of receiving the gift.

Also fill in these sections if you have received shares in a mutual housing association.

Property or parcel of land

If you received a property, enter the property code and other required information here.

Enter the fair market value of your share on the date of receiving the gift. Please note that the fair market value is not the same as the taxable value used in real estate taxation.

The property code consists of four sequences: municipality number – village or district number – house or block number – estate or plot number. Enter the code in the format xxx-yyy-nnnn-zzzz, for example 091-011-0022-0033. Each sequence of the code must contain as many numbers as in the example. If needed, add zeros at the start of each sequence.

Check the box for “Leisure property”, if the property you received is being used for leisure.
If you received a parcel of land, enter the surface area of the parcel under “The beneficiary has received a parcel of land, surface area”.

Check the “only buildings” box if you received buildings located on the property but not the grounds they are on. If you have only received some of the buildings located on the property, enclose an account of the buildings you received.

Check the “only land” box, if you received only land, excluding any buildings located on it.

Corporate stock, fund units and companies

Listed stock or fund units

If you received listed stock or fund units, enter the name of the stock or the fund, the number of shares or fund units and their fair market value on the date of donation.

Limited company

If you received shares in a limited company, enter its Business ID, the number of shares and their fair market value on the date of donation.

Partnership

If you received the share of a working partner in a limited partnership or a partnership, enter the Business ID of the partnership, your fractional share and the fair market value of the share on the date of donation.

If you received the share of a limited partner in a limited partnership, enter this under “Other assets”.

Agricultural assets or share of an estate

Agricultural assets

If you received a farm or a part of a farm, enter the fair market value of your share on the date of the donation. Enclose a photocopy of the deed of gift or of another conveyance.

Share of an undivided estate of a deceased person

If you received a share of an undivided estate, enter the fair market value of your share on the date of donation and the personal ID of the deceased person.

Other assets

If you received moveable property for which there is no section on the form, enter a description of the assets (for example: "car, registration number ABC-567"). Also enter the property’s fair market value of your share on the date of receiving the gift.

Attachments

Do not enclose other documents to the gift tax return than those indicated above in these instructions.

Only enclose photocopies, keep the original documents for yourself.