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V1891-17 18 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas de investigación

Professional research grants taxed as income from employment

A foundation asks whether research and training grants for experienced professionals are exempt from income tax and corporate tax. The DGT replies that since the grants are not for regulated studies and are not under the Statute of Training Researchers, they are taxed as income from employment.

The question raised

Whether the scholarships subject to this inquiry constitute income exempt from taxation and withholding in both the Personal Income Tax and the Non-Resident Income Tax.

The DGT's ruling

Scholarships are not exempt under Article 7.j) of the LIRPF because they are not for regulated studies nor do they fall within Royal Decree 63/2006. As there is no employment relationship, the per diem regime under Article 9 of the RIRPF also does not apply. In the IRNR, scholarships are considered income from employment and are subject to taxation if the activity is carried out in Spain. The use of Form 247 to avoid withholdings is not appropriate as no employment relationship exists.

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