Study Allowance
Highlights
- Allowance – Capped by the annual allowance of R1,000,000 per adult.
- Why the funds may be transferred – The allowance is designed to provide for academic fees and associated costs
- Applicable to – South Africans and permanent residents of the RSA who are taking full-time courses at schools, universities or similar educational institutions abroad.
Details
- Discretionary Allowance limit
The study allowance of R 1,000,000 forms part of the overall annual discretionary allowance of R 1,000,000 and any gifts made under this will be deducted from this allowance.
Foreign exchange facilities for study purposes may be made available by Authorised Dealers (as empowered by the Reserve Bank) to issue foreign currency under the following conditions:
- Documentary evidence from the learning institution abroad that the student has been enrolled on to a full time course for the period concerned
- Confirmation (prospectus or letter from the learning institution) of the tuition and academic fees
- Where the student is to be accompanied by a spouse a marriage certificate
Please note that the supplied documents are stamped 'exchange provided' (excluding the marriage certificate) and are returned to the applicant, who needs to retain them for at least five years.
Considerations and submissions with applications
- An estimated breakdown of the student's monthly expenses
- Name and details of the educational institution
- Details of any family members accompanying the student
- Description of the accommodation
- Any other reasons for justification of expenditure
How Incompass assists
As you would expect from an experienced foreign exchange control company we are able to guide you through your applicable allowance and complete all the required paperwork on your behalf. Of course you will also enjoy the benefit of personalised service, no money exchange service fees and the best of currency exchange rates. We can even help you set up appropriate banking in offshore destinations such as the Channel Island and Switzerland.
If you are considering transferring money as a gift contact Incompass – the smart way to transfer your money.
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