SARS Medical Deductions 2014
<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).
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Please note that companies deduct medical costs paid to employees as part of the normal payroll deductions / cost of human capital.