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V3125-21 16 December 2021 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · ganancias patrimoniales

Rewards for app referrals or registration are treated as capital gains for Income Tax purposes

An entity sought clarification on the tax treatment of 5 euro rewards given to users who refer others and to new users who register. The DGT has determined that these amounts constitute capital gains and are not subject to withholding tax.

The question raised

Taxation of prizes in the Personal Income Tax (IRPF) of registered and new users. Obligation to apply withholding or payment on account.

The DGT's ruling

Prizes for the 'inviter' user do not constitute income from economic activities as no commission work exists. For the 'invited' user, the prize is not income from movable capital through the transfer of own funds, as there is no causal link between the inflow of funds and the prize. Therefore, both amounts constitute capital gains pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF). There is no obligation to apply withholding or payment on account on these amounts.

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