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V2062-14 28 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gravamen especial

Lottery prizes shared through stakes are subject to pro-rata special taxation

An association has requested clarification on how National Lottery prize winnings, sold to members via stakes, are taxed. The DGT clarifies that the special tax applies proportionally to each co-owner and that the entity acts solely as a payment intermediary.

The question raised

Application of the special levy on prizes from certain lotteries and bets in the event that a tenth is awarded.

The DGT's ruling

National Lottery prizes are subject to the special levy of the Personal Income Tax (LIRPF) independently for each tenth. In the event of shared ownership, the 2,500 euro exemption is prorated among the co-owners according to their share. The entity selling the participations must not withhold, as the withholding is carried out by the payer of the prize. If the entity does not sell all the participations, the prize from those not sold is taxed under Corporate Income Tax.

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