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V1234-25 4 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Employee and children's study grants taxed as income from work

A public servant asks whether study allowances provided in her collective agreement for herself and her children are exempt from income tax. The DGT replies that these allowances are not exempt and must be taxed as income from work.

The question raised

Whether such grants are subject to withholding in Personal Income Tax.

The DGT's ruling

Study grants granted by a Public Entity are not exempt when the recipients are exclusively or primarily its employees or their relatives up to the third degree. As they constitute a specific group, these benefits are taxed as employment income and are subject to withholding according to Article 99 of the Personal Income Tax Law.

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