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V0282-24 4 March 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Vocational training grants not exempt from Income Tax are taxed as employment income with a 2% withholding tax

A non-profit foundation has requested clarification on whether it must apply a 2% withholding tax to study grants intended for a training and job placement project. The Directorate General for Taxes (DGT) has ruled that, as the grants do not meet the requirements for tax exemption, they are classified as employment income and subject to withholding tax.

The question raised

Is the foundation obliged to apply a 2% withholding tax on said study aid?

The DGT's ruling

The scholarships subject to this inquiry are not covered by the exemption under Article 7.j) of the LIRPF, as they do not correspond to regulated studies or research. Therefore, they are taxed as income from employment pursuant to Article 17.2.h) of the LIRPF. As they have a duration of less than one year, the minimum withholding rate of 2% must be applied in accordance with Article 86.2 of the RIRPF.

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