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V1823-19 15 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Grants for apprentice training in craft workshops are taxed as income from economic activities

A taxpayer inquired about the tax treatment of a grant from the Xunta de Galicia intended to fund apprentice training. The DGT ruled that, as the grant is intended to offset expenses, it constitutes a current grant that must be recorded as income from economic activities.

The question raised

How the aid must be reflected in Form 130 (fractional payment of Personal Income Tax) and in the annual Tax Return.

The DGT's ruling

The subsidy received to finance training periods for apprentices is classified as income from economic activities pursuant to Article 27.1 of the Personal Income Tax Law (LIRPF). As it is intended to finance expenses (apprentice remuneration and materials), it is considered a current subsidy. Therefore, it must be attributed to the tax period in which it accrues in accordance with Corporate Tax regulations.

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