The Tax Dimension of Succession
An inheritance transfers not only property but tax obligations as well. Article 57 of the Tax Code determines how the deceased person's tax liability passes to the heirs and what rights remain with them, while article 82 regulates which types of income connected with property received by inheritance or gift are exempt from income tax. Together these two norms form the frame whose knowledge is decisive in succession planning — both for the decisions of the living and for the procedures awaiting the heir.
The Deceased Person's Tax Liability
The deceased's tax liability is to be paid by the heir proportionally to the heir's share in the inherited property, from the day of receiving the inheritance certificate. The liability is what existed as of the date of death. The heir must notify the tax authority of receiving the certificate if the liability is known to them, and the authority must send the person a notice of the liability within 30 days of learning of the certificate. The liability is written off where the deceased has no heirs, where an heir has renounced the inheritance, or where the liability exceeds the value of the inherited property — by the remaining amount. An heir who continues the deceased's economic activity must notify the authority, register as a taxpayer before commencing the activity, pay the liability and discharge the other obligations of a taxpayer.
For such an heir this is not a mere formality: registration and payment together determine which rights pass to the heir and which obligations remain unfulfilled. Where a liability exists, the heir does best to start the procedure immediately upon receiving the inheritance certificate — both at the level of notification and of subsequent settlements.The Heir's Rights
The Code grants the heir not only obligations but rights as well. An heir continuing the deceased's activity may claim the refund or offset of tax or sanctions overpaid by the deceased, use the deceased's primary tax documents, submit tax declarations for the period of the deceased's activity, and even continue the tax dispute begun by the deceased. The tax authority is obliged to merge the personal record cards of the deceased and the heir. Where a refund of an overpaid amount is claimed, the authority reflects it on the card within 3 months and then returns or offsets it; and with respect to unfulfilled obligations identified in this way, sanctions are not applied against the heir.
The authority may also verify the compliance of the overpaid amount with the legislation, including through a tax inspection, and where unfulfilled obligations are identified — assess them on the heir's card if the activity continues, or within the limits of the overpaid amount if it does not.