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SARS Interpretation Note 66: Bursaries and Scholarships

02 March 2012   (0 Comments)
Posted by: SAIT Technical
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INTERPRETATION NOTE 66

DATE: 01 March 2012

ACT : INCOME TAX ACT NO. 58 OF 1962 (the Act)

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 Practice Note No. 17 of 12 March 1993 is hereby withdrawn.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.

To access the Interpretation Note, click here


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