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Old 11.04.2021, 13:02
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Deducting gifts from income in Tax Declaration possible?

Hello everyone, last year we sent some money as a gift to our parents living overseas (on which they paid taxes in their local Country). Do I get to deduct this gift from my income in the tax declaration (Kanton ZH)? Reading online I only found information about payments to spouse/ex-spouse or children. Thanks!
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Old 11.04.2021, 14:13
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Re: Deducting gifts from income in Tax Declaration possible?

Why did your parents pay tax? It wasn‘t earned income, but a gift...
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Old 11.04.2021, 18:42
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Re: Deducting gifts from income in Tax Declaration possible?

I can't for the life of me think of a reason why gifts should be tax deductible. I think even non-Swiss-approved charity donations are not tax deductible. However the situation might change if you're deemed to be financially supporting your parents i.e. they're dependent on you?
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Old 11.04.2021, 23:36
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Re: Deducting gifts from income in Tax Declaration possible?

I am afraid not. According to https://www.taxinfo.sv.fin.be.ch/tax...rgabungsabzug:
Steuerlich abziehbar sind:
a) Spenden anBund, Kanton und Gemeinden,
b) Spenden anLandeskirchen und die Kirchgemeindensowie die nach dem Gesetz über diejüdischen Gemeindenanerkannten Körperschaften und
c) Spenden an juristische Personen mit Sitz in der Schweiz, die im Hinblick auföffentliche oder gemeinnützige Zweckevon der Steuerpflicht befreit sind.

High level translation
a) donations to Swiss federation, cantons and communities
b) donation to recognised churches and religious bodies
c) donations to organisations located in Switzerland which are exempt from tax duty due to their mission/purpose
The regulation is similar in canton Zurich.

It is commendable though, that you support your parents.

Last edited by Czech chick; 11.04.2021 at 23:40. Reason: Cantonal specifics added
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Old 12.04.2021, 12:26
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Re: Deducting gifts from income in Tax Declaration possible?

They paid taxes because in their Country (as it is in Switzerland) gifts above a certain amount are taxable.

Eventually I found that you can deduct a part of it from your taxes as long as it is indeed to support under certain circumstances. I will check with the local tax authorities for my case.

See below the part "II. Unterstützungsabzug"
https://www.zh.ch/de/steuern-finanze...tml#1582452440
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Old 12.04.2021, 23:20
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Re: Deducting gifts from income in Tax Declaration possible?

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Why did your parents pay tax? It wasn‘t earned income, but a gift...
Many countries including the UK and Ireland have gift taxes.... the main objective is to ensure people don’t avoid inheritance taxes by gifting away their estate before death.
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Old 13.04.2021, 09:43
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Re: Deducting gifts from income in Tax Declaration possible?

you can deduct donations to church......does that mean you can also deduct money you are putting in the church box on sundays? How would you prove something like that?
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Old 13.04.2021, 09:46
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Re: Deducting gifts from income in Tax Declaration possible?

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Many countries including the UK and Ireland have gift taxes.... the main objective is to ensure people don’t avoid inheritance taxes by gifting away their estate before death.
Why do they even have inheritance taxes?

Tom
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Old 13.04.2021, 09:47
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Re: Deducting gifts from income in Tax Declaration possible?

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They paid taxes because in their Country (as it is in Switzerland) gifts above a certain amount are taxable.
Only to people who are not direct relatives.

Tom
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Old 13.04.2021, 09:52
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Re: Deducting gifts from income in Tax Declaration possible?

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Many countries including the UK and Ireland have gift taxes.... the main objective is to ensure people don’t avoid inheritance taxes by gifting away their estate before death.
The UK does not have a gift tax since 1986, £100 billion plus could be given to anyone. IHT could kick in in the person who gave the money does not live for 7 years.

Capital Transfer tax 1976-1986 might be what you were thinking about.
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Old 13.04.2021, 10:04
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Re: Deducting gifts from income in Tax Declaration possible?

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you can deduct donations to church......does that mean you can also deduct money you are putting in the church box on sundays? How would you prove something like that?
You can film it.
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Old 27.08.2021, 00:55
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Re: Deducting gifts from income in Tax Declaration possible?

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Hello everyone, last year we sent some money as a gift to our parents living overseas (on which they paid taxes in their local Country). Do I get to deduct this gift from my income in the tax declaration (Kanton ZH)? Reading online I only found information about payments to spouse/ex-spouse or children. Thanks!
Don't know much about Canton ZH but I know in Canton Schwyz - through my ex - that gifts to parents overseas in the form of parental support are fully tax deductible.
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