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V1497-19 21 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Research awards without transfer of rights are classified as professional activity income

A query was made regarding the tax classification of a research award that does not require the transfer of copyright. The DGT has determined that, in the absence of a transfer of rights, the award constitutes income from economic activities and is subject to withholding tax.

The question raised

Subject to withholding tax.

The DGT's ruling

As there is no assignment of intellectual property rights, the prize does not constitute income from employment, but rather income from economic activities (professional). Therefore, the 30 percent reduction is applicable as it is a scientific prize obtained in a notoriously irregular manner over time. Likewise, the payer must apply the corresponding withholding tax on the gross amount.

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