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V2618-14 6 October 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · beca

No recovery of non-resident income tax retention due to lack of exemption criteria

A medical resident in Bolivia inquired whether she could recover the retention of non-resident income tax applied to a training fellowship in Spain. The DGT responded that the fellowship is not exempt as its purpose is training rather than research, and no exemption applies under a treaty.

The question raised

RAISED: The consultant wishes to know if she is entitled to a refund of the withholding applied, and if so, the method to obtain it.

The DGT's ruling

The scholarship is not exempt under Article 7.j) of the LIRPF because its purpose is to finance an external rotation for training purposes and not for research. Furthermore, the exemption under Article 14.1.b) of the TRLIRNR does not apply as it is not a public administration scholarship. According to the Spanish-Bolivian Convention, remuneration may be taxed in Spain as it is the State where the employment is exercised. Therefore, the withholding applied is in accordance with the regulations.

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