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An entity inquired whether a €500 compensation payment made to individuals collaborating on nocturnal medical tests should be taxed as employment income. The Directorate General for Taxes (DGT) ruled that, as it constitutes the provision of personal services, it is classified as employment income and is subject to withholding tax.
This ruling clarifies that one-off payments for personal services in medical research are subject to income tax withholding, rather than being treated as other forms of income.
The tax team reviews your specific situation.
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