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V3181-17 13 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · becas públicas

University salary grants are exempt from Income Tax subject to certain quantitative limits

A query was raised regarding whether income-linked salary grants for university studies within the Autonomous Community are exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that they are exempt, provided the amount limits established in the Regulations are respected.

The question raised

1) Whether said scholarships are exempt from Personal Income Tax.

The DGT's ruling

Public scholarships for formal studies are exempt pursuant to Article 7.j) of the Personal Income Tax Law (LIRPF). The exempt amount includes tuition fees, accident insurance, and healthcare, plus a financial allowance subject to limits based on the type of study and destination. Any amount exceeding these limits is considered employment income subject to withholding. The exemption does not apply if the grants are awarded exclusively to employees of a public entity or their relatives.

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