Grants for external academic internships are taxed as employment income

The Directorate General of Taxes (DGT) has clarified the tax treatment of financial grants awarded within the framework of educational cooperation programs for the performance of external academic internships. This resolution addresses the nature of these earnings and their classification within Personal Income Tax (IRPF).

What the DGT has resolved

The query addressed whether paid extracurricular internships should be taxed under IRPF. The Administration's criteria establish that study grants or aids granted for external academic internship programs are considered employment income, in accordance with article 17 of the LIRPF.

A fundamental point of this resolution is that these earnings cannot benefit from the scholarship exemption provided for in article 7.j) of Law 35/2006. Since they are not considered exempt scholarships, they are integrated into the taxable base as income derived from a labor or professional activity.

What it means for you

The impact of this criterion is divided according to the affected profile:

• For the student: You must consider the financial aid received as employment income. Although there may be no obligation to file a tax return if the income does not exceed the established limit (22,000 euros per year), the nature of the income is taxable.
• For the company: The entity collaborating and granting the aid has the obligation to act as a withholding agent. It must apply the corresponding withholding on account of IRPF, using a minimum rate of 2 percent if the internship relationship lasts less than one year.

What should be done

It is necessary to verify the nature of any grant or study aid received during academic training to ensure that the tax treatment is correct. Companies must adjust their payroll and payment processes to comply with the withholding obligation on these grants, avoiding contingencies with the Administration. It is recommended to assess each particular situation to determine the exact impact on the income tax return.