In recent days, there has been a lot of focus on the difference in taxation when children gift their parents versus parents who gift their children.
Differences
These are two differences which have the effect that a gift tax is payable on an acquisition by parents much more than on an acquisition by children:
- the exemption For gifts by parents to children is (in 2024) € 6.633, while for gifts by children to parents the exemption is only € 2.658 amounts;
- the tariff: when the value of the gift(s) by parents to children exceeds the exemption, the children pay 10% to gift tax, while parents who obtain from their children more than the exemption 30% gift tax due (these rates apply up to an acquisition - above the exemption - of €152,368; above that the rates are 20% and 40%).
We do not venture to answer the (political) question of whether this should be equalised. However, we do note that equalisation can be shaped in two ways. The first idea that comes to mind is that parents should share in the children's exemption and rate. But when the (lower) exemption and the (higher) rate of the parents are applied to the acquisition by the children, the two situations are of course equalised.