CAMAF Member Option Guides & Info

Guide on the Determination of Medical Tax Credits (Issue 9) 17 3.5 Contributions and qualifying medical expenses deemed to be paid by the taxpayer Contributions to a medical scheme and qualifying medical expenses paid by a person other than the taxpayer 25 will not be taken into account when the AMTC is determined, except for – 26 • qualifying contributions and medical expenses paid by the estate of a deceased taxpayer for the period up to the date of the taxpayer's death. These costs are deemed to have been paid by the taxpayer on the day before the taxpayer's date of death; and • qualifying contributions and medical expenses paid by an employer of a taxpayer, to the extent that the amount has been included in the income of the taxpayer as a taxable benefit. 27 3.6 Amount of additional medical expenses tax credit to be deducted from tax due The calculation of the AMTC to which a person is entitled, is determined based on the following categories: • Taxpayers aged 65 years and older (see 3.6.1) • Taxpayers with a disability (see 3.6.2) • Taxpayers under the age of 65 (see 3.6.3) These are discussed below. 3.6.1 Taxpayers aged 65 years and older Persons aged 65 years and older could qualify for the AMTC, which is calculated as follows: Qualifying medical expenditure paid during the year of assessment, amounting to – 28 • 33,3% of the fees paid to a medical scheme or qualifying foreign fund as exceeds three times the amount of the MTC 29 to which that person is entitled; plus • 33,3% of qualifying medical expenses 30 paid (out-of-pocket expenses). To simplify this calculation, the following formula can be used: 33,3% × {[A – (3 × B)] + C} in which formula— "A" represents fees paid to a medical scheme or qualifying foreign fund for the year of assessment; 25 See 4 of this guide for practical application. 26 Section 6B(4). 27 As provided in paragraph 2(j), read with paragraph 12B. 28 Section 6B(3)(a). 29 Section 6A(2)(b). 30 Section 6B(1), definition of "qualifying medical expenses".

• Cover
• Preface
• Glossary
• 1. Background
• 2. Part A – Section 6A rebate (medical scheme fees tax credit)
• 2.1 Qualifying persons for whom contributions may be claimed
• 2.1.1 Meaning of a "dependant"
• 2.2 Person paying the contributions
• 2.2.1 Contributions paid by the taxpayer
• 2.2.2 Qualifying contributions
• 2.3 Medical scheme fees tax credit
• 2.4 Amount of medical scheme fees tax credit to be deducted from tax due
• 3. Part B – Section 6B rebate (additional medical expenses tax credit)
• 3.1 Background
• 3.2 Qualifying persons for whom expenses may be claimed
• 3.2.1 The meaning of "dependant"
• 3.2.2 The meaning of "spouse"
• 3.2.3 The meaning of "child" for purposes of the additional medical expenses tax credit
• 3.3 Qualifying medical expenses
• 3.3.1 Expenditure incurred inside the Republic
• 3.3.2 Expenditure incurred outside the Republic
• 3.3.3 Qualifying disability expenditure
• (a) Prescribed diagnostic criteria for a disability
• (b) Confirmation of disability (ITR-DD form)
• 3.3.4 Expenses relating to a physical impairment
• 3.4 Timing of claim for qualifying medical expenses
• 3.5 Contributions and qualifying medical expenses deemed to be paid by the taxpayer
• 3.6 Amount of additional medical expenses tax credit to be deducted from tax due
• 3.6.1 Taxpayers aged 65 years and older
• 3.6.2 Taxpayers with a disability
• 3.6.3 Taxpayers under the age of 65 without a disability
• 4. How to claim the medical scheme fees tax credit and additional medical expenses tax credit
• 4.1 Persons registered for income tax
• 4.2 Persons not registered for income tax
• 5. How to object to the disallowance of an medical scheme fees tax credit or additional medical expenses tax credit
• 6. Other information
• 6.1 Relief of customs and excise duty on a motor vehicle adapted for a physically disabled person
• Annexure A – The law
• Annexure B – The prescribed list of expenditure