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V1249-22 6 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Public grants for official master's degrees are exempt from Income Tax within legal limits

A taxpayer inquired whether a grant from the Regional Government of Andalusia for a master's degree at UNED is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that the exemption applies provided the studies lead to an official master's degree and the financial limits set out in the Regulations are respected.

The question raised

Whether said scholarship is exempt from Personal Income Tax. If not, whether it is considered employment income or a capital gain.

The DGT's ruling

Public scholarships for pursuing formal studies are exempt pursuant to Article 7.j) of the Personal Income Tax Law (LIRPF). For the exemption to be applicable, the studies must be part of a curriculum leading to the attainment of an official University Master's degree, excluding private university degrees. The exemption is limited to tuition costs, insurance, and a financial allowance in accordance with the limits established in the Personal Income Tax Regulations.

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