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V0509-16 9 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades profesionales

Awards for works or artistic creation contracts are taxed as professional activity income

A sculptor has enquired whether awards for submitted works or artistic creation contracts should be subject to withholding tax as professional activity income. The DGT has ruled that, as they result from their economic activity, they qualify as professional income.

The question raised

Applicable withholding on prizes for submitted works and on prizes consisting of the award of an artistic creation service contract for the execution of the sculpture.

The DGT's ruling

Prizes obtained by a sculptor, whether for works submitted or for the award of artistic creation contracts, constitute income from professional activities. As income from professional activities, they are subject to withholding by the payer. The general withholding rate is 15%, or 7% for new professionals under the conditions set forth in the Personal Income Tax Regulations.

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