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A taxpayer inquired whether the 30% reduction for irregular income could be applied to a foreign literary prize. The DGT ruled that the reduction is applicable if the prize does not involve the transfer of intellectual property rights, or if such transfer is limited to public disclosure without a profit motive.
This ruling clarifies the tax treatment of literary prizes, confirming that the 30% reduction for irregular income is available provided there is no transfer of exploitation rights or that any such transfer is non-profit in nature.
The tax team reviews your specific situation.
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