Taxation of a partially privately financed scholarship

If an economic consideration is to be provided for a scholarship, at least the privately financed portion of the scholarship is taxable.

Benefits from a scholarship that are not assigned to a type of income that takes precedence over other income are taxable as recurring payments if the scholarship holder has to provide any kind of economic consideration for the granting of the benefits. According to a ruling by the Federal Fiscal Court, this applies in any case to scholarships financed jointly from public and private funds if the scholarship is paid in part by a company.