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A query was raised regarding whether financial aid provided by an Autonomous Community to prevent social risk among minors is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has determined that it is indeed covered by the exemption under Article 7(y) of the Personal Income Tax Law.
Question posed: Whether the exemption regulated in Article 7 y) of the Personal Income Tax Law applies to said aid.
The aid to meet the needs of minors in living units lacking the means for their subsistence is included in the exemption provided in Article 7 y) of the Personal Income Tax Law. This exemption is subject to a maximum annual joint limit of 1.5 times the Public Indicator of Multiple Effects Income (IPREM).
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