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V0113-22 24 January 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

Grants for reduced working hours to care for minor children may be exempt from Income Tax

A taxpayer inquired whether a grant received under Castilla-La Mancha Decree 36/2021 for work-life balance is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that if the aid is intended for employees reducing their working hours to care for minor children, it constitutes exempt income.

The question raised

Whether the aid received is considered exempt from Personal Income Tax.

The DGT's ruling

Family benefits and aid received from Public Administrations related to the care of minor children are considered exempt income. Under the hypothesis that the subsidy is for workers exercising the right to reduce working hours for the care of children, the exemption under Article 7.z) of Law 35/2006 applies.

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