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V2299-19 5 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Scientific prizes without exemption are taxed as income from economic activities with a 30% reduction

A query was raised regarding whether a prize from the 'National Plan against Antibiotic Resistance' is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as it has not been declared exempt by the Administration, it must be taxed as income from professional economic activity.

The question raised

It is asked whether it is exempt from taxation under Personal Income Tax (IRPF).

The DGT's ruling

Literary, artistic, or scientific prizes that do not enjoy an exemption are considered income from employment or from economic activities. If the prize does not involve the assignment of intellectual or industrial property rights, it is classified as income from professional economic activity. In this case, as there is no assignment of rights, the 30 percent reduction is applicable as it is income obtained in a notoriously irregular manner over time.

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