You can greatly reduce your tax liability by asking your employer to pay for your child's school or university education or for your own education. The South African Revenue Service allows income used to pay for education to be exempt from tax provided that certain requirements are met. You will receive payment from your employer in the normal manner, except the income will fall under the code 3815 on your IRP5 - the document that details your annual salary information and is submitted to SARS each year when you file your tax return. For the income you spend on your own studies to be exempt from taxation, the following requirements must be met: the bursary or scholarship must be bona fide; it must be for study at a recognised educational institution; and it must be a condition that you agree to pay back the employer if you fail to complete your studies for reasons other than death, ill-health or injury. Ts & Cs apply If the money is paid for the studies of a relative, the full amoun...

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