The largest jackpot in the history of Pasapalabra will not go entirely to the pockets of the winner. At stake are some 2,274,000 euros, and not only Rafa Castaño and Orestes Barbero rub their hands. Also in the Treasury they expect the contest to be resolved. The pinch that the treasury takes from television awards is considerable.
All cash television prizes include a 19% income tax withholding. Regarding the money to be collected from the prize, the producer of the program reserves that percentage as an advance of the taxes that must be paid on the rent. That would be about 432,000 euros. Which leaves the prize at just over 1,840,000 euros. Then comes the personal income tax and the income statement.
The prizes are taxed on the general tax base, such as income from work or an economic activity, and are subject to the withholding of each autonomous region. Taking into account the prize, the retention percentage can exceed 50%. In the case of Rafa, resident in Andalusia, 47.2% is applied above 300,000 euros. Thus, the millionaire prize remains at just over half and would be around 970,000 euros net.
If the winner were Orestes, who studies in Navarra, the Provincial Treasury would earn more, since the personal income tax that is applied in that community over 300,000 euros of earned income is 52%. So the prize would stay at about 883,000 euros. In the case of paying taxes in his community of origin, in this case Castilla y León, it would be more costly: the amount would be approximately 1,012,000 euros, since the maximum tranche of personal income tax is 45%.
