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V1801-22 29 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Funding for undergraduate dissertations may be tax-exempt if provided as a public scholarship for formal studies

A taxpayer inquired whether a grant received to complete an undergraduate dissertation (TFG) in Valencian is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that if the grant meets the requirements of a public scholarship for formal studies, it is exempt within legal limits.

The question raised

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

The DGT's ruling

Financial aid for a Bachelor's Thesis is not considered a research grant, but it may be exempt as a public grant for pursuing formal studies. To qualify, it must be granted by a public entity and comply with the principles of merit and ability, generality, and non-discrimination. The exemption applies provided that the task is part of a curriculum to obtain an official Bachelor's degree.

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