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V4931-16 15 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gravamen especial

Lottery prizes in shared bets are taxed via special levy with pro-rated exemptions

A query was raised regarding the taxation of lottery prizes won through a betting syndicate and how to prove shared ownership. The DGT ruled that prizes are subject to the special levy and that the €2,500 exemption is pro-rated among participants according to their respective shares.

The question raised

Taxation of the aforementioned gaming system, declaration under the Personal Income Tax. Accreditation of prizes distributed to the members of the betting pool.

The DGT's ruling

State Lottery and Betting prizes are subject to the special levy of the Personal Income Tax Act independently for each bet. In the event of joint ownership, the 2,500 euro exemption is prorated among the co-owners based on their respective shares. The withholding tax is applied to the portion exceeding said prorated exemption. Joint ownership may be proven by any means of evidence admitted in Law.

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