"I work as a self-employed person, paying a micro-enterprise tax (25%). For some time now, my income has significantly decreased for objective reasons, and my mother, who receives two pensions (a regular one and one as a repressed person), has expressed her willingness to help me by giving part of her second pension each month as a gift.
Is this considered my income? And do I need to include this money received from my mother in my quarterly declaration and pay some tax on it?"
Kristīne Augustkalne-Jaunberziņa, Public Relations Specialist at the State Revenue Service:
– A mother is a relative. According to the norms of legislation, gifts from relatives up to the third degree of kinship are not subject to income tax, unless they are related to economic (business) activities.
In the micro-enterprise tax declaration (MUN), only income from economic (business) activities is indicated. Since the gift from the mother is not related to such activities, it does not need to be indicated in the MUN declaration.
The only point is that if the total amount of gifts for the year exceeds 10,000 euros, then the following year it will be necessary to submit an annual income declaration; the amount of the gift should be indicated in the section “Neapliekamie ienākumi” (“Income not subject to tax”).
