A gift tax return is late, incomplete or incorrect, or has not been filed at all

You must file a gift tax return within 3 months of the date when the gift was given.

If you file a gift tax return late or the details on the return are not correct or information is missing, you may have to pay a late-filing penalty or a punitive tax increase.

Late-filing penalty

You may have to pay a late-filing penalty in the following situations:

  • You file your return max. 60 days late.
  • You have filed an incomplete or incorrect return but you correct it to your detriment on your own initiative within 60 days from the deadline.

How much is the late-filing penalty?

The late-filing penalty is

  • €50 for individual taxpayers
  • €100 for companies or corporations.

The late-filing penalty is stated in the tax decision. We will not contact you before imposing the late-filing penalty, except in special cases.

Punitive tax increase

You may have to pay a punitive tax increase in the following situations:

  • You file your return over 60 days late.
  • You make additions or corrections to the gift tax return to your detriment on your own initiative over 60 days after the deadline.
  • The return contains errors or omissions, and you correct them only after the Tax Administration has sent you a request for additional information.
  • You make claims for which there are no grounds − for example, you seek tax relief for a change-of-generation situation even though the requirements for it are not fulfilled.
  • You do not file a gift tax return at all.

How much is the punitive tax increase?

The punitive tax increase is at least

  • €75 for individual taxpayers
  • €150 for companies or corporations.

The punitive tax increase is usually 10% of the added tax, i.e. of the tax that would not have been imposed if the negligence had not been noticed. The increase may also be lower (2% or 5%) or higher (15–50%). How much your tax is increased depends on the type of negligence.

The punitive tax increase is always calculated in accordance with tax bracket 1, even if you are in tax bracket 2.

The Tax Administration will send you a hearing letter before a punitive tax increase is imposed. The punitive tax increase is stated in the tax decision.