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V2921-20 29 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · formación profesional dual

Dual vocational training grants paid by companies are taxed as employment income

A query was raised regarding whether grants from a dual vocational training project paid by a company are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that they are not exempt and must be subject to withholding tax.

The question raised

Applicable withholding tax on a scholarship paid by a company to a student within the framework of a dual vocational training project of the educational system.

The DGT's ruling

Dual vocational training scholarships are not included in the exemption provided for in Article 7.j) of Law 35/2006. Therefore, they are considered income from employment subject to withholding. The withholding rate shall be determined according to the general procedure of the Personal Income Tax Regulations, and may not be less than 2 percent if the relationship lasts less than one year.

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