Should the South African Tax Relief Measures Offered in Respect of Bursaries or Scholarships for Tertiary Education Be Aligned with Tax Relief Measures Offered in the United Kingdom and the United States of America?

Abstract

Education bolsters employment opportunities, facilitates economic growth, diminishes poverty and increases collective prosperity. The primary challenge encountered by students in attaining a tertiary education qualification in the Republic is to secure funding for their studies. To counter tertiary funding challenges, bursaries and scholarships are offered by companies and institutions to students. This paper assessed whether the South African tax relief measures offered in respect of qualifying bursaries or scholarships for tertiary education, as delineated in sections 10(1)(q) and (qA) of the Income Tax Act, are aligned with the tax relief measures offered in the United Kingdom and the United States. A comparative analysis of the tax relief measures offered in respect of bursaries and scholarships in the Republic, the United Kingdom and the United States was performed. The paper demonstrated that tax relief measures offered in the Republic in respect of bursaries and scholarships for tertiary education were in alignment with the tax relief measures offered in the United Kingdom and the United States. The extent of the tax relief offered in the Republic was, however, noted to be more extensive as it was not merely limited to full-time and degree-seeking students; a necessity to increase tertiary education in a developing country, such as the Republic.