SARS Medical Deductions 2014

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<h2>The South African Revenue Medical Deducions for Individuals 2014</h2>

 

Effective 1 March 2013 the medical scheme fees tax credit system will be as follows:

  • A medical scheme contribution tax credit will be available to taxpayers who belong to a medical scheme and are below the age of 65 (including persons with a disability), set at fixed amounts per month:
  • R 257 per month for contributions made by the taxpayer and R 242 for the first dependant; plus
  • R 172 per month in respect of each additional dependant.

 

In the case of:

  • an individual who is 65 and older, or if that person, his or her spouse or child is a person with a disability, 33.3% of qualifying medical expenses paid and borne by the individual and an amount by which medical scheme contributions paid by the individual exceed 3 times the medical scheme fees tax credits for the tax year;
  • any other individual: 25% of an amount equal to qualifying medical expenses paid and borne by the individual and an amount by which medical scheme contributions paid by the individual exceed 4 times the medical scheme fees tax credits for the tax year, limited to the amount which exceeds 7,5% of taxable income (excluding retirement fund lump sums and severance benefits).

 

If you have any questions relating to interest exemptions please contact us on 011 447 8823 Today to speak to a consultant for FREE.

 

Please note that companies deduct medical costs paid to employees as part of the normal payroll deductions / cost of human capital.