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V3668-20 29 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · retención

Retention on prize payments required if base exceeds 300 euros

A local council asks whether IRPF or IS must be withheld when paying carnival prize money. The DGT clarifies that retention depends on the recipient's status and whether the amount exceeds 300 euros.

The question raised

Obligation of the city council to apply withholding tax on account of Personal Income Tax or Corporate Income Tax in the payment of prizes.

The DGT's ruling

In Corporate Income Tax, a withholding tax of 19% must be applied to contest prizes, unless the withholding base is less than 300 euros or the recipient is an entity exempt under Law 49/2002 with a certificate from the AEAT. In Personal Income Tax, prizes for natural persons or entities under the income attribution regime are subject to a 19% withholding tax if the withholding base exceeds 300 euros.

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