CAMAF Member Option Guides & Info

Guide on the Determination of Medical Tax Credits (Issue 9) 3 The two types of credits are dealt with separately in this guide, namely: (i) Part A – the MTC, dealing with contributions to a medical scheme; and (ii) Part B – the AMTC (which replaced the deduction of the medical allowance) 1 dealing with other qualifying medical expenses, including out-of-pocket expenses. For ease of reference, the legislation applicable to section 6A (which provides for the MTC) and section 6B (which provides for the AMTC) is quoted in Annexure A. 2. Part A – Section 6A rebate (medical scheme fees tax credit) All taxpayers (taxpayers under 65, taxpayers 65 and older and taxpayers with a disability) qualify to claim an MTC in respect of contributions paid by them (or deemed to have been paid by them) to a registered medical scheme. 2.1 Qualifying persons for whom contributions may be claimed Only medical scheme contributions paid by a taxpayer for him- or herself, and his or her dependants (as defined in the MS Act) may be considered in the determination of an MTC. 2.1.1 Meaning of a "dependant" There are two definitions for the term "dependant", one of which applies in relation to the MTC and the other which applies to the AMTC. When determining a "dependant" for purposes of the MTC, the definition of "dependant" in section 1 of the MS Act applies. 2 A "dependant" is defined in section 1 of the MS Act to mean – (a) the spouse or partner, dependant children or other members of the member's immediate family in respect of whom the member is liable for family care and support; or (b) any other person who, under the rules of a medical scheme, is recognised as a dependant of a member. The term "immediate family" in the definition of "dependant" in the MS Act refers to a particular group of relatives used in rules of law. This group is limited to a person's spouse or life partner, parents (including adoptive and step-parents), children (including adopted and step-children) and siblings. 3 2.2 Person paying the contributions 2.2.1 Contributions paid by the taxpayer Only qualifying contributions which were paid to a registered medical scheme (and that can be proven to have been paid by a taxpayer either directly or indirectly), will be taken into account in determining the MTC that the taxpayer will be entitled to claim. The taxpayer claiming the contributions must be able to prove that he or she actually paid the contributions. 1 Section 18 (repealed with effect from 1 March 2014). 2 The definition of "dependant" in section 6A(4) refers to the definition of "dependant" as contained in section 1 of the MS Act. 3 Black's Law Dictionary. Edited by Bryan A. Garner, 9 th ed. Thomas Reuters, 2009.

• 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