Can the donor pay the gift tax himself?

Question to an expert

I am going to make a donation, can I pay the duties to the tax authorities myself?

When a parent consents to a child or grandchild a donation exceeding the amount of the allowances, gift tax is due. If they are in principle to be paid by the donee, the donor can take charge of them without this constituting a complementary donation.

This faculty results from a ministerial response from 1975, the Geoffroy response: “The assumption by the donor in the deed of donation of costs and duties does not result in a complementary and distinct collection. There is therefore no reason to add the amount of these costs and duties to the value of the goods donated to calculate the tax payable. »

In practice, if you have a sum of 300,000 euros to give to your child and the tax rate is 20% taking into account previous donations, it is better to give 250,000 euros and pay the duties of 50,000 euros (250,000 × 20%). Because if you give 300,000 euros and leave it to your child to pay the gift tax, he or she will only keep 240,000 euros (300,000 euros – 20%).

However, if the donor does not have cash and must, to pay the rights, sell securities with very significant capital gains, it may be preferable to give the securities and leave the rights to be borne by the donee: the Taxation of the capital gain will be avoided.