School Fees Tax Relief in South Africa | South African Tax Help Hub

South Africa does not have a broad income tax deduction for ordinary school fees paid to a registered school. This is a common misconception - and acting on it can result in a SARS assessment and penalties (SARS: Tax Deductions, 2024). Education costs are only tax-relevant in specific, narrow circumstances.

Key Takeaways

Ordinary school fees are not deductible from South African taxable income.

Disability-related educational expenses may qualify under the medical expense rules if certified by a medical practitioner.

Employer bursaries for employees’ children are a payroll matter - not a deduction on the parent’s personal return.

Always obtain professional advice before including any education-related claim on an ITR12.

The important limitation

South Africa’s Income Tax Act does not contain a provision allowing ordinary school fees as a deduction from taxable income (Income Tax Act 58 of 1962). There is no equivalent to the education tax credits found in some other countries. Parents who claim ordinary school fees on their ITR12 without a specific qualifying basis risk SARS disallowing the deduction and raising an additional assessment.

Situations where a tax angle may exist

Disability-related medical expenses

Where a child has a qualifying disability and certain educational expenses are directly linked to that disability, certified by a medical practitioner, those costs may fall within the medical expense rules under section 6B of the Income Tax Act rather than a general education deduction (SARS: Medical Tax Credits). Specific qualifying conditions must be met. This is not automatic - the expenses need to be medical in nature, not ordinary school fees that happen to be paid for a child with a disability.

Employer bursaries and scholarships

Where an employer provides a bursary or scholarship to an employee’s child, specific provisions in section 10(1)(q) of the Income Tax Act govern whether the benefit is exempt or taxable in the employee’s hands. This affects the employer’s payroll calculation and the employee’s IRP5 - not a direct deduction on the parent’s personal ITR12. The exemption is limited to qualifying amounts and levels of study.

Business-related training

If you pay for education that is directly and demonstrably related to your trade or profession and generates current income, some costs may qualify under the general deduction formula in section 11(a) of the Income Tax Act. Standard school fees for a child fall entirely outside this category.

Practical checklist before claiming anything

Identify whether the situation involves a disability, an employer bursary, business-related training, or ordinary schooling.
Match the situation to the correct section of the Income Tax Act or a specific SARS ruling.
Gather source documents before calculating any claim - medical certificates, disability assessments, practitioner letters, invoices.
Check whether the tax issue is on the parent’s personal return or the employer’s payroll.
Get professional advice before claiming any amount related to education costs on an ITR12 - the risk of disallowance is significant without a clear qualifying basis.

Records to keep

Retain the following for at least five years if any education-related claim is made:

SARS assessments, notices, eFiling confirmations, and correspondence.
Medical certificates, disability assessment documents, and practitioner letters where applicable.
Bursary or scholarship agreements if an employer benefit is involved.
Invoices, receipts, and bank statements supporting any amount claimed.

Common mistakes

Claiming ordinary school fees as a deduction. There is no general provision for this. Many online articles incorrectly suggest school fees are deductible - they are not under current South African law.

Confusing the employer bursary exemption with a personal deduction. The employer bursary exemption under section 10(1)(q) affects the employer’s payroll - it does not create a deduction on the parent’s personal income tax return.

Using general advice without confirming it applies to your specific facts and tax year. Tax rules change, and the specific facts of your situation matter. Verify the current SARS position before filing any claim.

Frequently Asked Questions

Can I deduct my child’s school fees from my South African taxable income?

No, not as a general rule. South Africa does not provide a broad income tax deduction for ordinary school fees. Education costs are only tax-relevant in specific circumstances - disability-related medical expenses, employer bursary arrangements, or education directly related to your own trade. Claiming ordinary school fees without a qualifying basis risks a SARS assessment and disallowance.

Can fees for a child with a disability qualify for any tax relief?

Possibly, in specific circumstances. Where a child has a qualifying disability and certain educational expenses are linked to that disability and certified by a medical practitioner, those costs may qualify within the medical expense rules under section 6B. The expenses need to be medical in nature - not ordinary tuition fees that happen to be paid for a child with a disability. Specific conditions must be satisfied.

How are employer bursaries for employees’ children taxed?

Employer bursaries and scholarships are governed by section 10(1)(q) of the Income Tax Act. They may be exempt from employees’ tax up to a prescribed limit, subject to conditions relating to the employee’s remuneration level and the study programme. This is a payroll matter - the employer applies the exemption on the IRP5. It does not create a deduction on the parent’s personal income tax return.

What documentation do I need if education costs may qualify under any tax rule?

Keep SARS assessments and correspondence, medical certificates and disability assessment documentation where applicable, bursary or scholarship agreements if an employer benefit is involved, and all invoices, receipts, and bank statements for any amount claimed. SARS can request these in a verification and will disallow the claim if the documents are missing or insufficient.

Sources

SARS: Tax Deductions - current deductions available to South African individual taxpayers
SARS: Medical Tax Credits - medical expense rules, including disability-related expenditure under section 6B
Income Tax Act 58 of 1962, sections 10(1)(q) and 6B - employer bursary exemption and medical expense credit provisions

This guide is for general educational purposes. Verify the current rules and conditions with SARS or a qualified tax professional before including any education-related claim on a return.