Coverage of Documents with Monetary Amounts from Donations or Parental Allowances: Instructions and Clarifications
, by Κωνσταντίνα Χριστοδούλου, 2 min reading time
According to article 34 of the law. 4172/2013 CIT , when the presumed income exceeds the declared one, the difference is added to the taxable income.
To reduce this difference, the taxpayer may rely on various sources of income, including financial amounts from donations/parental benefits.
The financial parental benefits and donations - up to the amount of 800,000 euros - among relatives of the first category are tax-free.
As of October 1, 2021, the obligation to pay 10% tax was abolished for any parental benefit or for any donation of money between spouses, from parents to child and from grandparents to grandchildren, provided that in each case the amount donated does not exceed 800,000 euros.
If the amount donated exceeds 800,000 euros, then only the part above 800,000 euros is taxed at 10% (e.g., a parental benefit of 900,000 euros will be subject to tax of 10,000 euros, which corresponds to 10% of the excess amount of 100,000 euros).
Parental benefits or donations of funds to first-degree relatives are made by transferring money through financial institutions.
That is, the money must be deposited in a bank account and the transfer must be made from it.
Conditions for Accepting Donations or Parental Allowances to cover the cost.
In order for these amounts to be accepted by the Tax Administration, the following conditions must be met:
• The donation or parental benefit declaration must be submitted to the tax authority by the end of the year in which the relevant expenditure was made.
• The taxpayer must prove that the amounts were received before the expenditure was made.
• The amounts must have been taxed or exempted from capital taxation.
The recent circular E.2009/2025 provides important clarifications regarding the late submission of the donation or parental benefit declaration.
It is clarified that in the event that the amounts of money claimed by the taxpayer to reduce the difference between the presumed and total income, originate from a donation or parental benefit for which the relevant capital tax return was submitted after the end of the year in which the relevant expenditure was incurred, the amounts are accepted provided that their collection before the expenditure was incurred and their taxation or exemption from taxation is proven. capital taxation.
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