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V1374-17 2 June 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Public grants for early years education are exempt from Income Tax if call requirements are met

A query was raised regarding whether a monthly grant of 100 euros from the Community of Madrid for private nurseries is exempt from Income Tax (IRPF). The Directorate General for Tax (DGT) ruled that it is exempt, provided the award complies with the principles of merit, ability, generality, and non-discrimination.

The question raised

Whether the public aid granted is exempt from Personal Income Tax (IRPF).

The DGT's ruling

Public scholarships for formal studies are exempt pursuant to Article 7.j) of the Personal Income Tax Law (LIRPF). For the exemption to be applicable, the grant must comply with the principles of merit and ability, generality, and non-discrimination in access and publicity. Furthermore, they may not be aids intended exclusively or primarily for employees of the public entity or their relatives.

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