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V2869-16 22 June 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

Public grants for language immersion abroad are exempt from Income Tax

A query was raised regarding whether a grant of up to 1,000 euros for an English language immersion programme in Canada or the USA is exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as it is a public grant for formal studies, the exemption applies.

The question raised

To determine whether said aid is exempt from taxation under the Personal Income Tax.

The DGT's ruling

The aid of up to 1,000 euros constitutes a public scholarship for undertaking regulated studies within the educational system. Therefore, the exemption provided in Article 7.j) of the LIRPF is applicable. The exempt amount shall be adjusted to the limits set forth in Article 2.2.1º of the RIRPF for studies abroad.

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