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.
This guide provides general guidelines regarding the medical scheme fees tax credit and additional medical expenses tax credit for income tax purposes. 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. This guide includes the amendments effected by section 3(1) of the Taxation Laws Amendment Act 43 of 2014 and by section 4(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act 42 of 2014, both promulgated on 20 January 2015. As the year of assessment of an individual ends on the last day of February, these amendments apply to the years of assessment commencing on or after 1 March 2014 (that is, the 2015 year of assessment).
