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V1137-24 23 May 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Grants for external academic internships are taxed as employment income

A student inquired whether financial aid received for undertaking university internships in rural areas was exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that these amounts do not qualify for the scholarship exemption and must be taxed.

The question raised

Whether the scholarship/aid is exempt from Personal Income Tax.

The DGT's ruling

Grants or study aids awarded in university-company educational cooperation programs for external academic internships are considered income from employment pursuant to Article 17 of Law 35/2006. These amounts are not covered by the scholarship exemption provided for in Article 7.j) of the same law. As non-exempt employment income, they are subject to withholding tax on Personal Income Tax (IRPF) by the entity making the payment.

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