Tax Consequences of Late Filing of Form SD-Z2

Tax Consequences of Late Filing of Form SD-Z2

Summary of the article:

• When does the tax obligation arise?

• Total tax exemption

• SD-Z2 submitted after the deadline – is restoration possible?

• Tax consequences of missing the deadline

When does the tax obligation arise?
According to the Inheritance and Donation Tax Act, the tax obligation applies to a person who acquires ownership of property or property rights through donation, inheritance, donor's order, or bequest.

In the case of a donation, the obligation arises:

• upon submission of the notarial deed declaration,

• or at the moment the donation is made, if not in notarial form.

In the case of inheritance:

• on the day the court ruling on inheritance becomes final,

• or on the day of registration of the notarial deed of inheritance confirmation.

Total exemption from tax
Under Article 4a(1) of the Act, close relatives (e.g. spouse, children, parents, siblings) may benefit from total exemption from tax if they:

• report the acquisition to the relevant tax office within 6 months,

• provide proof of transfer of funds to the recipient’s account, if the donation involves cash.

The required form is SD-Z2. The deadline is counted from:

• the date of receipt of the donation,

• or the date the inheritance ruling becomes final / notarial deed is registered.

SD-Z2 submitted after the deadline
Can the deadline be restored? Unfortunately not. Jurisprudence confirms that the 6-month period is a substantive law deadline, not procedural – it cannot be reinstated even if the taxpayer is not at fault.

Judgment of the Supreme Administrative Court of 12.04.2017 (II FSK 631/15): “Missing the deadline results in the loss of the right to exemption and the obligation to pay tax according to general rules for Group I.”

Tax consequences of missing the deadline
Failure to submit SD-Z2 on time means:

• the obligation to pay inheritance and donation tax,

• the acquirer may use the tax-free amount (currently: PLN 10,434 for Group I),

• tax is calculated on a scale: 3%, 5%, or 7%,

• it is necessary to submit the SD-3 declaration.

The tax is calculated based on the net value of acquired property/rights at market prices on the date of acquisition.

Summary:

• SD-Z2 must be submitted within 6 months,

• the deadline cannot be restored,

• failure to report = loss of exemption = tax must be paid.
  Only timely submission of the SD-Z2 form ensures the right to full tax exemption.

Source: Poradnik Przedsiębiorcy