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V0488-24 4 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Research grants for civil servants may be tax-exempt if awarded for research purposes

A university official enquired whether grants for teacher retraining were exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) indicates that if the grants are for research purposes and teaching status is a requirement of the call, the financial award may be exempt.

The question raised

Whether said aid (including the lump sum payment for travel expenses) is exempt from taxation through the application of the exemption regulated in Article 7 j) of the Personal Income Tax Law and, consequently, the payer, in accordance with Article 75.3.a) of the Tax Regulations, is not obliged to perform withholding.

The DGT's ruling

For scholarships granted to civil servants or teaching and research staff to be exempt under Article 7.j) of the LIRPF, they must serve research purposes and the status of said personnel must be an express requirement or merit in the terms and conditions. If these requirements are met, the exemption includes the financial endowment of the program, including travel expenses.

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