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V3205-17 14 December 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Payments from foreign universities for maintenance are taxable as employment income

A doctoral student enquired whether funds received from a US university for their doctoral stay were subject to Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as the payment is neither an exempt scholarship nor derived from an employment relationship, it must be taxed as employment income.

The question raised

Question posed: Whether the amount received from the United States university is subject to taxation under Personal Income Tax.

The DGT's ruling

The amount is not exempt because it does not meet the requirements of Article 7.j) of the LIRPF, such as the principles of merit, capacity, generality, and non-discrimination. It is also not considered a research grant within the scope of Royal Decree 63/2006. As it does not derive from an employment or statutory relationship, but is not an exempt grant, the amount is subject to taxation as income from employment.

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