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V2657-17 18 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias patrimoniales

Gambling winnings classified as capital gains, calculated by deducting stakes from prizes

A taxpayer queried how profits and losses from sports betting are taxed and how to substantiate them. The DGT ruled that these constitute capital gains and that the amount wagered must be deducted from the prize obtained.

The question raised

Taxation of capital gains and losses obtained. Justification.

The DGT's ruling

Gaming winnings constitute capital gains pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF). To calculate the gain, the amount wagered directly related to the prize is subtracted from the amount of the prize itself, except for prizes subject to the special tax under the thirty-third additional provision. Losses and gains are computed globally within the tax period. The justification of these amounts shall be carried out through the means of proof admitted under Law.

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