Are you Helping your School/Study Fee Paying Employees Save on Taxes?

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 have been extended in the 2017/18 Budget Speech.

Why is this school fees tax break not more widely utilised?

The most common reasons why employers, business owners and their advisors have been reluctant to offer this child bursary scheme to employees include –

  • Technical uncertainty on how the school fees tax relief must be package structured correctly and concerns that a tax scheme may be operated which may later be challenged by SARS audit.
  • Resources to implement, roll out and administer the child bursary scheme.
  • Capacity to deal with employee questions, tax risk management, proper communication on the school fees saving to employees.
  • The cost of top end tax advisors to see through implementation and administration of the employee child bursary scheme.

Outsource the Complexity

We offer an outsourced employee children bursary scheme. The cost of this service is an administration fee, funded by the employer dependant on the number of employees who sign up

a) Assessment on whether employees qualify for the child bursary, and the tax saving achieved.

b) Salary structuring agreement.

c) Instruction for payroll.

d) One invoice per month for all participating employees with reconciliation.

e) Tax policy documentation, tax opinion and other supporting documentation to ensure full tax legal compliance and tax risk management.

Our service includes our defence against any SARS employees’ tax audit or employee personal tax audit, at no cost to the employer, including any costs of defence at the Tax Board or Tax Court.


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