Ask a tax advisor on the topic of Gift tax

What happens if the gift tax is not paid on time?

January 22, 2023 | 50,00 EUR | answered by Lina Walter

Dear Tax Advisor,

I recently received a large gift and have learned that I need to pay gift tax. However, I have not yet made a payment as I am unsure of the amount of tax and the best way to pay it. I am worried about the consequences if I do not pay the gift tax on time.

I want to avoid any delays or even penalties. Therefore, I would like to know what happens if the gift tax is not paid on time. What are the consequences if I miss the deadline? Are there any ways to still pay the tax after the deadline without incurring additional penalties?

I would greatly appreciate your assessment and recommendations on how to proceed in order to pay the gift tax on time and avoid any potential issues. Thank you in advance for your help.

Sincerely,

Roberta Rüppel

Lina Walter

Dear Mrs. Rüppel,

Thank you for your inquiry regarding gift tax. It is understandable that you are concerned about how to pay the tax on time to avoid possible consequences. In this context, it is important to adhere to the applicable regulations and deadlines in order to avoid incurring penalty payments.

If the gift tax is not paid on time, it can lead to various consequences. Primarily, a late payment penalty of 1% per month of the overdue amount is usually levied. This means that the longer the payment is delayed, the higher the additional costs will be. Additionally, there may also be late payment interest that increases the total amount of gift tax.

To avoid these additional costs, it is advisable to pay the gift tax on time. If for any reason you are unable to meet the deadline, it is important to immediately contact the relevant tax office to clarify the situation. In many cases, the tax office is understanding and allows for a late payment without additional penalties as long as you proactively reach out to them.

Therefore, it is recommended to act early and ensure timely payment of the gift tax. If you need assistance or further information, I am at your disposal and happy to advise you on the various options available to you.

I hope this information is helpful to you and I am available to assist with any further questions.

Best regards,

Lina Walter