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A query was raised regarding whether a monthly stipend of €350 paid to a student undertaking curricular internships should be subject to Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) ruled that these payments constitute employment income and must be subject to withholding.
This ruling clarifies that stipends for academic internships are treated as employment income for tax purposes, meaning companies must apply the appropriate IRPF withholding, regardless of the amount.
The tax team reviews your specific situation.
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