CAMAF Member Option Guides & Info

Guide on the Determination of Medical Tax Credits (Issue 9) 4 Qualifying contributions paid by a person other than the taxpayer 4 will not be taken into account when the MTC is determined, except for – • qualifying contributions paid by the estate of a deceased taxpayer 5 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 his or her death; and • qualifying contributions 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. 6 Example 1 – Contributions paid on behalf of a member of a medical scheme Facts: X, a friend of Y, paid monthly contributions of R1 000 to Excellent Health SA, a registered medical scheme. The amounts were paid for Y and Y's spouse and children, who are not dependants of X. Result: Y may not claim an MTC for the amounts paid by X. X may also not claim an MTC for the amounts paid for Y, since the contributions have not been paid for X or a dependant of X. 2.2.2 Qualifying contributions Contributions paid by the taxpayer for him- or herself, and any dependant (as defined in the MS Act – see 2.1.1), to a medical scheme registered under the MS Act, may be taken into account when the MTC is determined. Example 2 – Contributions to an unregistered medical scheme Facts: AA paid monthly contributions of R2 000 to XYZ Health SA as part of a health insurance plan, not to a registered medical scheme. The contributions are for AA, AA's mother, AA's spouse and their two children. They are all considered dependants under the rules of the medical scheme. Result: The amounts paid by AA were not paid to a registered medical scheme and, as a result, are not regarded as qualifying contributions. Example 3 – Contributions to a registered medical scheme Facts: AB paid monthly contributions of R2 000 to ABC Health SA, a registered medical scheme. The contributions are for AB, AB's mother, AB's spouse and their two children. They are all considered dependants under the rules of the medical scheme. 4 See 4 of this guide for practical application. 5 Section 6A(3)(a). 6 Section 6A(3)(b), read with paragraphs 2(i) and 12A of the Seventh Schedule.

• 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