Sweepstakes for advertising or promotional purposes

Sweepstakes aimed exclusively at advertising or promoting a product or service, whose sole compensation is the consumption of said product or service, without surcharge or tariff, which offer cash, in-kind or service prizes and, in certain cases, require registering as a client of the entity being advertised or promoted.

Sweepstakes for advertising and promotional purposes are excluded from the scope of application of the Gambling Act, with the exception of what is laid down in relation to the Gambling Tax; therefore, they do not require a licence or authorisation, nor any prior notice to the Directorate General for Gambling Regulation. They are therefore subject to the applicable general regulations of commercial and civil law.

TAX ARRANGEMENTS

Notwithstanding the above, all legal persons and individuals who take part in sweepstakes for advertising or promotional purposes are subject to payment of the Gambling Tax, under the conditions and rates laid down in Article 48 of Law 13/2011. This tax rate amounts to 10 % of the total market value of the prizes offered or advantages granted to participants.

The State Tax Agency is responsible for managing, collecting, settling and inspecting the tax.

Likewise, all legal persons and individuals who take part in sweepstakes for advertising or promotional purposes are subject to the withholdings and/or Treasury deposits which derive from current regulations on the tax at a given time, as on-account payment of the Income Tax corresponding to the receiver.