A Comparative Study on Individual Income Taxation of Property Gift
Based on the analysis of individual income tax systems of some developed jurisdictions,this paper identifies three different income tax treatments on property gift's appreciation:taxation,deferral,and exemption.The vast majority of developed jurisdictions exclude the amounts received by gratuitous transfer from the base of the individual income tax.Over half of the developed jurisdictions impose inheritance and gift taxes on the gift of property,while most of them adopt exemption or deferral mode for the tax treatment of gift property for individual income tax purpose,and the tax obligations related are clearly defined.The paper believes that China should adopt the tax deferral mechanism,and further improve the design of the individual income tax system,including the gift of property should not be treated as deemed sales,excluding receipt of gifts from taxable income and clarifying the original value of the gift property accepted by the recipient.
Property giftIndividual income taxInheritance and gift tax
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