It is a tax that must be paid to the state by the person who is the creditor of an inheritance or succession while they are alive. It is important to note that this type of inheritance tax covers the same figure as gift taxes.
This type of tax is applied after the death of a person . In the event that the person who dies does not leave any recognized family member or testament proving the inheritance, the assets of this person automatically become the property of the state.
At the time of making the will , the person who is going to make it in the first place must be the direct owner of the assets to be attested, secondly, this person can choose whoever he considers necessary to be part of it; It can be a natural person, an NGO, etc.
In the case of NGOs , when they receive inheritances, by virtue of being legal persons and existing under the status of NGOs, they are exempt from paying taxes.
Characteristics of the inheritance tax
- It is a personal tax that creditors must pay.
- It is subjective since it evaluates both the situation of the person creditor of the inheritance, the person who is going to make the payment, and the level or degree of kinship that exists between the deceased person and the one who is going to receive the inheritance.
- It is an indirect tax , that is, it is applied on income and assets and must be paid to the state through the public administration in charge.
- It is a progressive tax , that is, to the extent that it is inheritance, to the same extent it is the amount based on the tax that must be paid.
- Depending on the country or locality where you are, it will be the percentage of assets that must be canceled.