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V3350-20 12 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas exentas

Grants for work-life balance via reduced working hours for childcare are exempt from Personal Income Tax (IRPF)

A query was raised regarding whether a grant from Castilla y León, intended for employees who reduce their working hours to care for a minor, should be subject to Personal Income Tax (IRPF). The Directorate-General for Taxes (DGT) ruled that such aid is exempt from taxation.

The question raised

Taxation in the Personal Income Tax of the subsidy.

The DGT's ruling

Family benefits and aid received from any Public Administration, linked to the birth, adoption, foster care, or care of minor children, are considered exempt income. Therefore, the subsidy for reduction of working hours for the care of a minor is exempt pursuant to Article 7.z) of Law 35/2006.

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