Researchers with predoctoral contracts will be taxed on tuition discounts

The tax treatment of educational benefits granted to researchers in the training phase has been defined by the tax administration. The Dirección General de Tributos (DGT) has analyzed whether a discount on doctoral program tuition, granted to researchers with predoctoral contracts, should be considered exempt employment income or a taxable benefit.

What the DGT has ruled

The DGT has ruled that the discount applied by the university to doctoral tuition constitutes employment income in kind subject to Personal Income Tax (IRPF).

The body has ruled out the application of the exemption provided for in Article 42.2.a of the LIRPF (Personal Income Tax Law), which allows for training or retraining expenses for personnel to remain untaxed. The criteria are based on the fact that predoctoral contract regulations require prior admission to the doctoral program in order to sign said contract. Consequently, the administration considers that this is not training arranged by the employer for the development of the activity, but rather a prerequisite for accessing the job position.

What this means for you

If you are a researcher with a predoctoral contract and receive a discount on your tuition costs, this benefit has a direct economic impact on your tax return. Since it is not considered training required by the characteristics of the position, but rather an access requirement, the value of said discount must be included in your taxable base as a benefit in kind.

For universities and entities managing these contracts, this criterion implies that they must treat these discounts as part of the staff's remuneration, ensuring the correct tax treatment of the payroll.

What should be done

It is necessary to evaluate the impact of this criterion on the tax planning of researchers who benefit from this type of advantage. Given that the training exemption is not applicable in this specific scenario, the discount must be considered additional income subject to current IRPF regulations. It is recommended to analyze each contractual situation to determine the correct integration of these benefits into the taxable base.