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V1285-18 17 May 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

End-of-degree award classified as employment income, ineligible for 30% tax reduction

A student inquired whether a €3,000 award received for outstanding academic performance was exempt or eligible for a tax reduction. The Directorate General of Taxes (DGT) has determined that it must be taxed as employment income and is not eligible for the reduction for irregular income.

The question raised

Treatment in the Personal Income Tax of the amount received from said prize.

The DGT's ruling

The prize is neither a scholarship nor an exempt literary, artistic, or scientific prize, but rather income from employment due to its link to the performance of studies. It must be attributed to the tax period in which it becomes due. The 30% reduction is not applicable because it is not income obtained in a notoriously irregular manner over time, nor does it have a generation period exceeding two years.

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