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V0500-24 4 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gravamen especial

Financial compensation received in lieu of a prize is not subject to the special lottery tax

A taxpayer inquired whether a €100,000 compensation received due to an error in a digital game should be subject to the special tax on lottery prizes. The DGT ruled that, as it constitutes compensation rather than a prize, the special tax does not apply; instead, it must be taxed as a capital gain under Personal Income Tax (IRPF).

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

The compensation paid in lieu of a prize is not subject to the special tax on lotteries and gambling. However, said amount constitutes income subject to Personal Income Tax (IRPF) which must be included in the general taxable base as a capital gain not arising from a transfer. Its quantification is the full amount of the compensation and no withholding tax is applicable.

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