CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. SARS Issues Revised Guide On Medical Tax Credits

SARS Issues Revised Guide On Medical Tax Credits

by Lorys Charalambous,, Cyprus

20 November 2015

The South African Revenue Service (SARS) has issued a revised Guide on the Determination of Medical Scheme Fees Tax Credits and Additional Medical Expenses Tax Credits.

The monthly amount of the MTC applies to fees paid by a taxpayer to a registered medical scheme (or similar registered scheme outside South Africa), and increases according to the number of dependents a taxpayer has. Taxpayers younger than 65 converted to it from the previous tax deduction from March 1, 2012, while taxpayers aged 65 and older converted from March 1, 2014.

Replacing the previous medical expenses allowance, the AMTC was introduced on March 1, 2014. How much a taxpayer may claim under the credit largely depends on the age of taxpayer. When reaching the age of 65, a taxpayer can claim an increased amount.

The AMTC covers qualifying out-of-pocket medical expenses for the taxpayers and their dependents, including services rendered and medicines supplied by, for example, a registered medical practitioner, dentist, optometrist, or homeopath; hospitalization in a registered hospital or nursing home; and medical expenses incurred and paid outside South Africa.

In order for expenses to qualify for the AMTC, they must not have been recoverable by the taxpayer from any other person; for example, from the taxpayer's medical scheme or an insurer under a top-up medical insurance plan. In addition, qualifying medical expenses can only be claimed in the year of tax assessment during which they are actually paid.

SARS stresses in the Guide that the MTC and the AMTC are credits against taxes payable and are, as a result, limited to the tax payable before the offset of employees' tax and provisional tax. They cannot therefore create a refund, nor can any excess be carried forward to the next year of assessment.

TAGS: South Africa | tax | revenue guidance | insurance | employees | tax credits | tax authority | health care | tax breaks | individual income tax | services | Africa | Tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »