Issue link: https://www.hub.camaf.co.za/i/984824
Guide on the Determination of Medical Tax Credits (Issue 9) 16 Physical impairments will, for example, include – • bad eyesight; • hearing problems; • paralysis of a portion of the body; and • brain dysfunctions such as dyslexia, hyperactivity or lack of concentration. Diabetes and asthma are recognised as medical conditions and not as physical impairments. Once again, the expense must be in consequence of a physical impairment suffered by the taxpayer or any dependant of the taxpayer. The expense will only qualify if it was necessarily incurred and paid by the taxpayer. 23 For a discussion on the terms, "in consequence of" and "necessarily incurred", please refer to 3.3.3. Example 12 – Necessarily incurred, in consequence of Facts: JC purchased a wig for R2 500. It is not known why the wig was purchased, as JC has not suffered any abnormal hair loss as a result of disease, accident or medical treatment. It appears JC suffers solely from male pattern baldness. Result: Although the expense of a wig is prescribed by the Commissioner, the expenditure of R2 500 is not a qualifying expense, as the expense is not necessarily incurred in consequence of a physical impairment (male pattern baldness cannot be regarded as a physical impairment). A taxpayer will be able to claim an AMTC if he or she or any of his or her dependants has a physical impairment that is not a "disability" as defined. These qualifying expenses will, however, be subject to the 7,5% limitation (see 3.6.3). 24 3.4 Timing of claim for qualifying medical expenses Qualifying medical expenses can only be claimed in the year of assessment during which they are actually paid. Expenses can be incurred during a year of assessment but may not necessarily be paid in that same year of assessment. This will, for example, be the case where the obligation to pay expenses has been incurred towards the end of a year of assessment but has only been paid in the subsequent year of assessment, or where medical expenses are incurred on account and the instalments are only paid in the subsequent year of assessment. 23 Section 6B(1), definition of "qualifying medical expenses" paragraph (c). 24 Section 6B(3)(c). This limitation does not apply to taxpayers aged 65 years and older.