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V2635-19 26 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Scholarship tax exemption does not apply if the activity performed does not constitute a scholarship by its nature

A taxpayer inquired whether financial aid granted by a foundation to carry out activities within a university chair is exempt from Personal Income Tax (IRPF) as a scholarship. The Directorate General for Taxes (DGT) ruled that, due to the nature of the activities, it does not qualify as a scholarship and therefore the exemption does not apply.

The question raised

Whether the exemption regulated in Article 7 j) of the Personal Income Tax Law applies to said scholarship: specifically, the last paragraph of letter 7 j).

The DGT's ruling

For the exemption under Article 7.j) of the LIRPF to apply, the benefit must be truly a scholarship, understood as a grant to carry out studies or research. In this case, the activities to be performed are not considered a scholarship, regardless of the designation given by the foundation in its call for applications.

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