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V2814-18 26 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Grants and aid for unemployed persons in training are not exempt from Income Tax

A query was raised regarding whether disability grants and transport allowances for unemployed persons in training in Castilla y León are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that they are not exempt, as their purpose is labour market integration rather than formal education or research.

The question raised

Whether said aid is exempt from taxation under Personal Income Tax.

The DGT's ruling

The scholarships and grants subject to this inquiry are not covered by the exemption under Article 7 j) of the Personal Income Tax Law (LIRPF), as their purpose is the labor insertion or reintegration of unemployed persons. As they do not correspond to the fields of regulated studies or research, they must be taxed as income from employment pursuant to Article 17.2.h) of the LIRPF.

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