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V0823-21 7 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · prácticas académicas externas

Study grants for external academic internships are subject to income tax

A query was raised regarding whether financial allowances received for undertaking external academic internships are subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that these grants are classified as employment income and are not exempt from taxation.

The question raised

Whether said allocation is subject or not to taxation under Personal Income Tax.

The DGT's ruling

Grants or study aids awarded through university-company cooperation programs for conducting external academic internships are considered income from employment. These amounts are not covered by the exemption provided in Article 7 j) of Law 35/2006. As income from employment, they are subject to withholding according to the general procedure of the Personal Income Tax Regulations, with a minimum rate of 2 percent if the relationship lasts less than one year.

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