A gift tax is a tax imposed on the transfer of property by one individual to another, without consideration (i.e., no payment or exchange made). The tax applies to gifts that exceed a certain monetary value, which varies depending on the jurisdiction. Gift taxes are designed to prevent individuals from avoiding estate and inheritance taxes through large-scale gift giving during their lifetime. In many countries, there is an annual exclusion amount, meaning that small gifts made within a calendar year do not require any reporting or payment of gift tax. However, if the total value of all gifts given in a single year exceeds this limit, then a gift tax return must be filed and any applicable taxes paid.