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V1102-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Dual vocational training grants subject to Income Tax (IRPF) withholding as employment income

A query was raised regarding whether grants paid by companies to dual vocational training students in Andalusia are exempt from or subject to tax withholding. The Directorate General for Taxes (DGT) has determined that they do not meet the requirements for exemption and must be taxed as employment income.

The question raised

Whether said scholarships are subject to withholding as income from employment or are exempt from taxation through the application of the exemption regulated in Article 7 j) of the Personal Income Tax Law.

The DGT's ruling

Scholarships for dual vocational training projects are not covered by the exemption under Article 7.j) of the LIRPF, as this is limited to public scholarships, those from non-profit entities, or banking foundations. Therefore, they are considered income from employment pursuant to Article 17.2.h) of the Law. As they are paid by a company, they are subject to IRPF withholding following the general procedure of the Regulations.

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