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V0988-14 7 April 2014 · SG de Fiscalidad Internacional Criterion in force
IRPF · becas

Non-regular practice scholarships are not IRPF-exempt unless part of an official master's programme

The DGT states that scholarships for post-MBA overseas practice are subject to IRPF as income from work, or exempt from IRNR if the activity is fully carried out abroad, provided the practices are not a requirement for obtaining an official master's degree.

The question raised

Tax treatment in Spain of amounts received as a scholarship and, specifically, whether they are entitled to the exemption.

The DGT's ruling

If the scholarship is granted for internships that are not part of an official university master's degree teaching plan, the exemption under Article 7.j) of the LIRPF does not apply. In this case, the amounts are considered employment income subject to taxation and withholding tax. If the beneficiary is a non-resident and the activity is not carried out in Spain, the income will not be taxed in Spain.

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