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V3129-19 11 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Awards granted to employees for good practices are taxable as employment income

An employee enquired about the taxation of a €1,500 award granted by their employer to cover training expenses. The DGT has determined that the amount must be taxed as employment income, and the general withholding rate from their payroll shall apply.

The question raised

Taxation of the prize amount in Personal Income Tax (IRPF).

The DGT's ruling

As it is an exclusive call for public employees, the prize is classified as employment income pursuant to Article 17.1 of Law 35/2006. Its temporal imputation depends on the enforceability determined by the administrative resolution of the award. The applicable withholding rate shall be the general rate established in Article 80.1.1 of the Tax Regulations, following the employee's payroll procedure.

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