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V2607-24 19 December 2024 · 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 subject to certain requirements

A query was raised regarding whether financial aid from the Madrid City Council for early years education is exempt from Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) ruled that these public grants for formal education are exempt, provided the call for applications adheres to the principles of merit, ability, generality, and non-discrimination.

The question raised

Taxation in the Personal Income Tax (IRPF) of the aid received.

The DGT's ruling

Public scholarships for formal studies are exempt from Personal Income Tax (IRPF) pursuant to Article 7.j) of the Personal Income Tax Law (LIRPF). For the exemption to be applicable, the award must comply with the principles of merit and ability, generality, and non-discrimination regarding the access conditions and the publicity of the call for applications. They shall not be exempt if the recipients are exclusively or primarily employees of the public entity or their relatives.

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