Medical Tax Credit in Force by Sars
20 August 2013
Posted by: Author: SAICA
Author: SAICA (Moneywebtax)
Medical aid tax credits could potentially bring medical cover within reach of low to mid-tier earners.
The new medical contribution credits, which are now effective for the 2013 tax year will probably make medical aid cover reasonably affordable for lower income earners, observes Yusuf Dukander, project director of financial services at the South African Institute of Chartered Accountants (Saica).
Dukander adds that taxpayers who belong to a medical scheme would now qualify for contribution credits whereas previously taxpayers were entitled to a deduction. The contribution credits are set at a fixed monthly amount for the taxpayer and first dependant, and two-thirds of this amount for additional dependants.
He explains that this is a positive route in the healthcare industry until such time that the National Health Insurance (NHI) is fully operational; citing that Health Minister Dr Aaron Motsoaledi was quoted in his Health Budget speech on 15 May 2013, as saying that "the White Paper on NHI will be released soon".
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