Back to index
V1370-16 1 April 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

University tuition discounts for employees and relatives are taxable as benefits in kind, unless they coincide with an exempt public scholarship

A university has requested clarification on whether discounts on public fees for its staff and their relatives constitute a benefit in kind, and whether the exemption remains if the beneficiary also receives a Ministry scholarship. The Directorate General for Taxes (DGT) has ruled that the discount is a taxable benefit in kind, but any amount that coincides with a public Ministry scholarship will be exempt.

The question raised

Taxation of the tuition fee discount established by the university for the aforementioned personnel and their spouses, domestic partners, and children under 28 years of age. In particular, the question concerns its consideration as income in kind when the beneficiary of the discount obtains a general scholarship from the Ministry.

The DGT's ruling

The tuition fee discount for employees and their family members constitutes a benefit in kind subject to withholding tax, as it does not meet the scholarship exemption requirement by being directed at a specific group. However, if the beneficiary also receives a public scholarship from the Ministry for formal studies, the amount of the discount that coincides with said scholarship shall be exempt from taxation. The exemption for the public scholarship applies because it adheres to the principles of merit, capacity, generality, and non-discrimination.

Book your free first meeting