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V1438-22 20 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Grants for competitive exam preparation must be taxed as employment income

A taxpayer enquired whether grants received from the Generalitat Valenciana to prepare for Group A civil service exams were exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that since the grants are not for pursuing formal studies towards an official degree, the exemption does not apply.

The question raised

Whether said grant must be included in the individual's Personal Income Tax return.

The DGT's ruling

For a public scholarship to be exempt under Article 7.j) of the Personal Income Tax Law (LIRPF), it must be granted to pursue formal studies that are part of a curriculum leading to an official degree (Bachelor's, Master's, or Doctorate). Grants for preparation of competitive examinations do not meet this requirement and must therefore be taxed as income from employment.

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