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V0269-20 4 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Transport and childcare allowances for the unemployed are taxable as employment income

A taxpayer inquired whether transport and childcare allowances received for attending training courses are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that they are not exempt and must be taxed as employment income.

The question raised

Taxation of said grants. In particular, the following is raised:

The DGT's ruling

Grants for transport and reconciliation for unemployed persons are not considered exempt scholarships under Article 7 j) of the LIRPF, as their objective is labor market insertion and not formal studies or research. These amounts must be taxed as income from employment in accordance with Article 17.2.h) of the LIRPF. If they are received in a period different from the one in which they were due for justified reasons, a supplementary tax return for the corresponding period must be filed.

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