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V0602-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Grants for external academic internships are subject to Income Tax (IRPF) withholding

A query was raised regarding whether a monthly stipend of €350 paid to a student undertaking curricular internships should be subject to Income Tax (IRPF) withholding. The Directorate General for Tax (DGT) ruled that these payments constitute employment income and must be subject to withholding.

The question raised

Issue raised: Subject to withholding tax for Personal Income Tax (IRPF).

The DGT's ruling

Grants or study aids awarded within educational cooperation programs for external academic internships are considered income from employment pursuant to Article 17 of Law 35/2006. As they are not covered by the scholarship exemption under Article 7.j), they are subject to withholding tax for Personal Income Tax (IRPF). If the relationship between the student and the company lasts less than one year, the withholding rate may not be less than 2 percent.

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