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V2982-20 5 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Payments for academic external placements are treated as income from work

A company asks about the taxation of monthly payments to students on placements. The DGT responds that these amounts are income from work subject to withholding, either through IRPF if the student is a resident or through IRNR if non-resident.

The question raised

Taxation of students (withholdings) under IRPF and IRNR.

The DGT's ruling

Scholarships or grants for external academic internships are non-exempt employment income. If the student is a tax resident, the general IRPF withholding procedure applies, with a minimum rate of 2% for durations of less than one year. If they are a non-resident, they are subject to IRNR as they constitute Spanish-source income, with a general rate of 24% or 19% for residents in the EU/EEA with information exchange.

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