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V0756-16 25 February 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades profesionales

Sports competition prizes taxed as income from professional activities

A query was raised regarding whether chess championship prizes should be subject to Personal Income Tax (IRPF) withholding. The Directorate General for Taxes (DGT) ruled that such prizes are considered income from professional activities, unless an employment relationship exists.

The question raised

Question raised: Subject to withholding tax on Personal Income Tax (IRPF).

The DGT's ruling

Prizes awarded by organizers or sponsors of sporting competitions to participants are considered income from professional activities. This classification entails being subject to withholding tax applying the fixed rates for professional activities. The only exception is the existence of an employment relationship between the organizer and the athlete, in which case they would be considered income from employment.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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