Skip to content
Back to index
V2774-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias patrimoniales

Requirement to withhold tax on prizes with cash and non-cash components if the total exceeds €300

A query was raised regarding whether there is an obligation to withhold Personal Income Tax (IRPF) on prizes delivered partly in cash and partly in kind when the cash component amounts to €300. The Directorate General for Taxes (DGT) clarifies that the obligation to withhold arises when the sum of both components exceeds €300.

The question raised

Withholding tax (on account of Personal Income Tax) applicable to prizes paid partly in cash and partly in kind, with the monetary amount being 300 euros.

The DGT's ruling

The obligation to withhold or make a payment on account for prizes with a dual component (monetary and in kind) is effective if the sum of both exceeds a base of 300 euros. A withholding tax of 19 percent shall be applied to the monetary portion. Regarding the in-kind portion, the payment on account shall be calculated by applying 19 percent to the acquisition value or cost increased by 20 percent.

Book your free first meeting