Whereas most fringe advantages provided to workers are taxable, there are exemptions within the case of bursaries and scholarships. In case your employer provides bursaries and/or scholarships to workers and their households, a portion of the profit won’t be taxed.
Necessities to qualify
- You (the worker) can not earn greater than R600,000 each year.
- The scholarship or bursary can solely be granted for examine at a recognised instructional establishment.
- You could conform to repay your employer if the recipient of the bursary /scholarship doesn’t efficiently full the research for which the bursary or scholarship was supplied.
The worth of the profit
The tax profit is proscribed to R20 000 for research as much as NQF 4, and R60 000 for research from NQF5 and above. Nevertheless, when the bursary or scholarship profit is granted to a disabled relative of the worker, the exemption restrict is raised to R30 000 per relative for research as much as NQF 4, and R90 000 for research from NQF5 and above. Any quantity over this can turn out to be a part of your taxable revenue.
The monetary help ought to assist the recipient develop their data or abilities and, due to this fact might cowl the next prices:
- Tuition charges;
- Registration and examination charges;
- Books, gear and lodging meals (and meal vouchers);
- Transport from a residence to campus and again.
If you happen to’d prefer to reap the benefits of this exemption, focus on methods to construction your wage along with your employer (or related HR division).
Tax Tuesday
Being tax environment friendly is a crucial a part of nice monetary administration. On this weblog, a gaggle of South African tax specialists at AJM Tax share their suggestions and explanations on tax points. Study every part that you must find out about tax, from deductions you by no means knew about to retirement financial savings and capital positive factors. The primary Tuesday of each month is Tax Tuesday.
