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A taxpayer inquired whether allowances received from the INEM to cover transport, subsistence, and accommodation costs during a vocational training course were tax-exempt. The Directorate General for Taxes (DGT) has ruled that these allowances do not qualify as exempt scholarships and must be taxed as employment income.
Taxpayers receiving vocational training allowances from the INEM must declare these amounts as employment income in their personal income tax returns, as they do not meet the criteria for tax-exempt scholarships.
The tax team reviews your specific situation.
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