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V2664-17 18 October 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · compensación de gastos de escolarización

Compensation for Spanish language schooling costs is exempt from Income Tax under public scholarship limits

A query was raised regarding whether economic compensation received from the Ministry of Education for schooling costs in private centres (to guarantee teaching in Spanish) is subject to Income Tax (IRPF). The Directorate General for Tax (DGT) ruled that such compensation is considered a public scholarship for formal studies and is, therefore, exempt.

The question raised

Treatment, in the Personal Income Tax, of the aforementioned compensation.

The DGT's ruling

The economic compensation for schooling expenses is covered by the exemption for public scholarships to pursue formal studies within the educational system (Art. 7.j LIRPF). Its exemption is subject to the limits established in Art. 2.2.1º of the RIRPF, which contemplates tuition costs, insurance, and a maximum economic allowance depending on the type of studies.

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