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V1112-15 13 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo en especie

Masters for non-profit foundations may be exempt from IRPF

A foundation asked whether price reductions for courses constitute taxable income. The DGT states that if the scholarships are for regulated studies under an objective procedure, they may be exempt under article 7.j) of the IRPF Law.

The question raised

Question posed: Whether the reduction in the price of the courses provided by the applicant is considered taxable income for the student. If so, the classification of said income. In the event it is considered employment income, whether it is subject to the minimum withholding tax rate of 2%.

The DGT's ruling

Study grants consisting of a reduction in tuition fees are considered benefits in kind from employment. However, scholarships for formal studies, such as official master's degrees, are exempt if granted by non-profit entities subject to Law 49/2002. For the exemption to apply, the award must comply with the principles of merit, capacity, generality, and non-discrimination, through public calls and competitive selection processes.

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