SECTION : SECTION 10(1)(q) AND THE SEVENTH SCHEDULE TO THE ACT SUBJECT : SCHOLARSHIPS OR BURSARIES
This Note provides clarity on the tax implications of any bona fide scholarship or bursary granted to enable or assist any person to study at a recognised educational or research institution. Practice Note No. 17 of 12 March 1993 is hereby withdrawn.
Generally, any bona fide scholarship or bursary granted to enable or assist any person to study at a recognised educational or research institution is exempt from normal tax. This exemption is, however, subject to certain conditions, particularly where the scholarship or bursary is granted by an employer (or an associated institution in relation to that employer) to an employee or to a relative of such employee.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.