According to the exemption formula, if the school fees are between 3.5% and 10% of the total income, a parent will qualify for a partial exemption.

According to the exemption formula, if the school fees are between 3.5% and 10% of the total income, a parent will qualify for a partial exemption. The school cannot ask the parents to sign an Acknowledgement of Debt in lieu of the possibility of defaulting on payment at a future date.

Example:

Suraj has one child in a school. The annual school fees are R3 000 with additional costs of R150 for the year. Together Suraj and his wife earn an annual gross income of R35 000. Will they qualify for a partial exemption from school fees?

E (Exemption) = 100 [ F (Annual fees) + A (Additional contributions demanded by the school) ] / [ C (Combined annual gross income of both parents) ]

E = 100 [ R3 000 + R150 ] / [ R35 000 ]

E = 100 [ R3 150 ] / [ R35 000 ]

E = 100 x 0.09

E = 9%

Suraj and his wife would qualify for a partial exemption because the fees are between 3.5% and 10% of their combined income. In other words, Suraj will have to pay a portion of the fees. To find out how much he will have to pay, look at the Table for Calculation Exemptions. According to this Table which is included in the regulations, parents with one child at a school who spend 9% of their joint income on school fees, qualify for a 94% fee exemption.

94% of the joint income of R3 000 = R2 820

R3 000 – R2 820 = R180

Suraj will therefore have to pay R180 in school fees for their child for the year.