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Medical expenses paid by employer for employee above 65 years old

13 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical 

The answer to this query is based on legislation as at 2014/03/13. 

Q: If an employer pays medical expenses (over and above the medical aid contribution) for an employee who is over 65 years old, are these amounts taxable in the hands of the employee?

A: "Para 12B(3)(b)(iv) expressly states that no value should be placed on medical expenses where the person qualifies for a s 6(2)(b) rebate – older than 65.” The answer to your question therefore in short is that no value should be placed on the medical expenses.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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