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V2182-20 29 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Rewards for watching advertising videos may be treated as capital gains for Income Tax purposes

A company has requested clarification on the taxation of cash payments made to users who watch advertising videos on its platform. The Directorate General for Taxes (DGT) has determined that if the participation is circumstantial and is neither employment nor professional income, it should be classified as capital gains.

The question raised

Taxation in Personal Income Tax (IRPF) of the remuneration paid to users, collaborators. Withholdings.

The DGT's ruling

If the collaboration is a circumstantial event based solely on the status of a participant and does not derive from an employment relationship or from the exercise of a professional or business activity, the compensation qualifies as a capital gain pursuant to Article 33.1 of Law 35/2006. As it is a capital gain, no Personal Income Tax (IRPF) withholding is applicable as it is not provided for in Article 75 of the Personal Income Tax Regulations.

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