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A foundation enquires about the tax treatment of accommodation and transport grants for foreign students undertaking internships. The DGT examines the application of double taxation treaties based on the student's fiscal residence and nationality.
Question raised In relation to said financial aid:
For non-residents, the exemption depends on Double Taxation Treaties; for example, US students may be exempt under certain limits, whereas for Canada or the United Kingdom they are not if the aid is of Spanish source. For residents in Spain, aid for non-regulated master's degrees is not exempt under Article 7.j) of the Personal Income Tax Law (LIRPF) as they are not regulated studies, and must be taxed as employment income with withholding tax.
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