SCHOOL FEES TAX BREAK

EMPLOYER DRIVEN INITIATIVE FOR THE BENEFIT OF EMPLOYEES

The ability for employees and business owners to pre-tax structure their children’s school and university fees, remain one of the few available, but seldom used tax planning opportunities. This is the only tax break allowed on private expenses and was extended in the 2017/18 Budget Speech.

Why has this not been implemented by employers before?

  • Administration hassle and compliance burden. Our offering will remove both issues for the employer.
  • The law is still new. The Supreme Court of Appeal gave a landmark ruling on package structuring and the Budget 2017/18 speech announced the adjustments from March 2017.

How does it work?

  • Qualifying threshold: Income of less than R600 000.00 per annum.
  • Payable to: Pre-primary, Primary and Secondary Schools. University and Colleges.
  • Tax exemption per child per annum: Grade R – Grade 12: R20 000.00 | Diploma, Bachelors Degree or Doctoral Degree: R60 000.
  • Fees include: School Fees, Examination fees, Registration fees, Tuition fees, Books, Meal Vouchers, Accommodation (excl. home), Transport (residence to campus) and Equipment (required in a field of study).

Who is covered by this tax break?

  • Payable for children and relatives: Own biological children, Legally adopted children and Relatives 3 times removed.

EMPLOYEE VALUE PROPOSITION

Employee-Value-Proposition

Contact Us Now