Issue link: https://www.hub.camaf.co.za/i/984824
Guide on the Determination of Medical Tax Credits (Issue 9) 10 (b) in the case of any other child, was incapacitated by a disability from maintaining himself or herself and was wholly or partially dependent for maintenance upon the person and has not become liable for the payment of normal tax in respect of that year;" 3.3 Qualifying medical expenses 3.3.1 Expenditure incurred inside the Republic Expenses paid by a taxpayer during the year of assessment to any duly registered – (i) medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor, or orthopaedist for professional services rendered or medicines supplied to the person or any dependant of the person; (ii) nursing home or hospital or any duly registered or enrolled nurse, midwife or nursing assistant (or to any nursing agency in respect of services of such nurse, midwife or nursing assistant) in respect of the illness or confinement of the person or any dependant of the person; or (iii) pharmacist for medicines supplied on the prescription of any person mentioned in subparagraph (i) for the person or any dependant of the person, will be taken into account in determining the AMTC, provided these expenses have been paid for the taxpayer or any dependant of the taxpayer. In order for the expenses to qualify for the AMTC, the expenses must not have been recoverable by the taxpayer from any person, for example, from the taxpayer's medical scheme or an insurer under a medical gap cover insurance plan. Example 9 – Expenditure not recoverable from medical scheme Facts: BA belongs to a registered medical scheme, to which Dr F (who is a duly registered medical practitioner) submitted a claim of R1 000 for consultation fees. The medical scheme only paid R600 of this expense, resulting in BA having to pay the remaining R400 to Dr F. Result: The difference of R400 (R1 000 less R600) that was not paid by the medical scheme but paid by BA is regarded as a "qualifying medical expense" and will be taken into account when the AMTC is determined. Example 10 – Payment to an unregistered medical practitioner Facts: BB paid R1 000 to C for a medical consultation. C is a final-year medical student. Result: The payment of R1 000 is not a "qualifying medical expense" and will not be taken into account when the AMTC is determined, as the amount which BB paid was not to a duly registered medical practitioner.