Amanda Visser
4 minute read
20 Oct 2020
9:00 am

Higher price of schooling

Amanda Visser

Employees getting a bursary for a relative through a salary sacrifice will no longer receive it tax-free.

The school’s head of department Stanley Makolane said the school is famous for achieving more than 90% passes. File image: iStock

National Treasury’s concerns about several tax schemes in respect of bursaries and scholarships granted to the relatives of employees by their employers have led to a change in the way the bursaries will be taxed from next year. Treasury initially proposed several amendments to tackle the perceived abuse of tax-exempt bursaries that could effectively have shut down both bursaries to employees and bursaries to the relatives of employees. After extensive consultation with the industry the tax exemption on bona fide bursaries by employers to employees will remain as is, says Beatrie Gouws, head of stakeholder management and strategic development at...