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V0616-20 31 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Occupational training grants are taxable as employment income

A query was raised regarding whether a grant received for a course subsidised by the Employment Service is exempt from tax. The Directorate General for Taxes (DGT) ruled that it is not covered by the exemption for formal education and must be taxed as employment income.

The question raised

Type of withholding and key to be reported.

The DGT's ruling

Financial aid to promote professional qualification through occupational training workshops and internships is not covered by the exemption under Article 7.j) of the Personal Income Tax Law (LIRPF). These scholarships qualify as employment income pursuant to Article 17.2.h) of the law. The withholding rate shall be determined according to the general procedure of the Personal Income Tax Regulations.

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