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V0118-21 28 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · beca pública

An academic merit award from a local council may qualify as a tax-exempt public scholarship

The applicant inquired whether a €700 academic merit award granted by a local council could be treated as a scholarship exempt from Personal Income Tax (IRPF). The Directorate General for Tax Regulations (DGT) ruled that, provided the specific requirements of the call for applications are met, it qualifies as an exempt public scholarship.

The question raised

Taxation of the award under Personal Income Tax.

The DGT's ruling

The academic merit award, regardless of its designation, is an exempt public scholarship pursuant to Article 7.j) of the Personal Income Tax Law. This is due to the fact that it is received for undertaking formal studies and the call for applications complies with the principles of merit and ability, generality, and non-discrimination. The exempt amount includes tuition costs and a financial allowance within the limits established in the Tax Regulations.

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