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V3158-14 26 November 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención

Scholarship tax exemption does not apply if the grant is provided by a private company

A query was raised regarding whether study grants received for undertaking internships at a company, via an agreement with a university, are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that they are not exempt because the granting entity is neither a public body nor a non-profit organisation under a special tax regime.

The question raised

Possible application of the exemption provided for in Article 7 j) of the Personal Income Tax Law to said aid.

The DGT's ruling

For a scholarship to be exempt under Article 7 j) of the Personal Income Tax Law (LIRPF), it must be public or granted by non-profit entities under a special tax regime. Since the aid is granted by a company that is neither a Public Sector entity nor a non-profit entity under a special regime, the exemption does not apply and it must be taxed as income from employment.

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