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V1322-19 6 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Grants for unemployed persons in training are not exempt from Income Tax

A query was raised regarding whether disability and transport grants received through a training programme for the unemployed are exempt from Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that they do not meet the requirements for exemption and must be taxed as employment income.

The question raised

Whether said aid is exempt from taxation under Personal Income Tax.

The DGT's ruling

Scholarships and grants for the labor market insertion of unemployed persons do not fall within the scope of regulated studies or research provided for in Article 7 j) of the Personal Income Tax Law (LIRPF). Therefore, they must be taxed as income from employment pursuant to Article 17.2.h) of the same regulation. However, their effective taxation will depend on the existence of other income and the application of reductions and personal allowances.

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