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V1807-14 9 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Online horse racing betting results taxed as capital gains or losses for Income Tax purposes

A taxpayer has enquired about the taxation of gains and losses from online horse racing betting. The Directorate General for Taxes (DGT) has ruled that these results are considered capital gains and losses and must be calculated on a global basis for the tax year.

The question raised

Taxation in the Personal Income Tax (IRPF) of the capital gains and losses obtained in the aforementioned bets during the 2013 fiscal year.

The DGT's ruling

The results of online horse racing bets are classified as capital gains and losses pursuant to Article 33 of Law 35/2006. Losses in gambling shall not be accounted for if they exceed the gains obtained in the same tax period. The calculation is performed on a global basis for the fiscal year, being irrelevant whether the funds have been withdrawn from the operator's account. Net gains are integrated into the general taxable base.

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