Studying is a process that sometimes involves travelling to another country, in order to receive specialised training, or to harness the prestige of certain renowned universities. The South African exchange control regulations recognise this situation, and make provision for a Study Allowance.
The Study Allowance may not exceed an amount of ZAR1 million per annum per adult, and is supposed to cover academic fees and related expenses. The Study Allowance is available to South African citizens and permanent residents who are following a course of study in foreign schools, universities or other educational facilities.
It is important to note that the Study Allowance forms part of the annual Discretionary Allowance of ZAR1 million, and as such will be deducted from the Discretionary Allowance.
Authorised dealers have been given the authority by the South African Reserve Bank (SARB) to issue foreign currency for the purposes of the Study Allowance, and the following conditions have to be met.
* The foreign educational institution needs to provide documentary proof that the student concerned has indeed been registered for a full-time course of study covering the relevant period of time.
* An indication also has to be supplied of the academic fees and related expenses that need to be paid.
* If the student is accompanied by their spouse, a marriage certificate
needs to be provided.
The following factors are also taken into consideration.
* Name and details of the educational institution
* An estimated breakdown of the student’s monthly expenses
* Details of any family members accompanying the student
* Description of the the accommodation
* Any other expenditure
With the exception of the marriage certificate, any documents provided to the dealer will be stamped as “exchange provided” and will be returned to the applicant, who then needs to retain the documents for a period of at least five years.