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A query was raised regarding whether payments to referees and judges in sports federations should be subject to Personal Income Tax (IRPF) withholding. The Directorate General for Taxes (DGT) has determined that these earnings are classified as employment income rather than income from economic activities.
This ruling clarifies the tax treatment for sports officials, ensuring that their remuneration is correctly subjected to employment income tax withholdings instead of being treated as business income.
The tax team reviews your specific situation.
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