Issue link: https://www.hub.camaf.co.za/i/984824
Guide on the Determination of Medical Tax Credits (Issue 9) 30 Annexure A – The law Section 6A of the Income Tax Act 58 of 1962 6A. Medical scheme fees tax credit—(1) In determining the normal tax payable by any natural person there must be deducted an amount, to be known as the medical scheme fees tax credit, equal to the sum of the amounts allowed to that natural person by way of rebates under subsection (2). (2) (a) The medical scheme fees tax credit applies in respect of fees paid by the person to— (i) a medical scheme registered under the Medical Schemes Act; or (ii) a fund which is registered under any similar provision contained in the laws of any other country where the medical scheme is registered. (b) The amount of the medical scheme fees tax credit must be— (i) R303, in respect of benefits to the person; (ii) R606, in respect of benefits to the person and one dependant; or (iii) R606, in respect of benefits to the person and one dependant, plus R204 in respect of benefits to each additional dependant for each month in that year of assessment in respect of which those fees are paid. (3) For the purposes of this section, any amount contemplated in subsection (2) that has been paid by— (a) the estate of a deceased person is deemed to have been paid by the person on the day before his or her death; or (b) an employer of the person is, to the extent that the amount has been included in the income of that person as a taxable benefit in terms of the Seventh Schedule, deemed to have been paid by that person. (4) For the purposes of this section a "dependant" in relation to a person means a "dependant" as defined in section 1 of the Medical Schemes Act. Section 6B of the Income Tax Act 58 of 1962 6B. Additional medical expenses tax credit.—(1) For the purposes of this section— "child" means a person's child or child of his or her spouse who was alive during any portion of the year of assessment, and who on the last day of the year of assessment— (a) was unmarried and was not or would not, had he or she lived, have been— (i) over the age of 18 years; (ii) over the age of 21 years 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 such year; or (iii) over the age of 26 years 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 such year and was a full-time student at an educational institution of a public character; or (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;