Tax exemption of a scholarship

Benefits from a DFG Heisenberg Fellowship generally meet the requirements for tax exemption of fellowship payments.

Scholarships are tax-free under certain conditions. According to a ruling by the Federal Fiscal Court, these conditions are also met in the case of a Heisenberg Fellowship from the German Research Foundation (DFG). Although the DFG is a private scholarship provider, it fulfills the requirements for the tax exemption of scholarships from a private scholarship provider because it pursues exclusively and directly charitable purposes. Furthermore, the scholarship does not exceed the amount required to cover living expenses and is not linked to an obligation to provide a specific scientific service in return.