Medical Scheme Fees Tax Credit was introduced from 1 March 2012 but didn’t affect all categories of taxpayers at once. There are two different start dates depending on the age of the taxpayer:
The amounts may vary depending on the number of months in the tax year that a taxpayer and dependents are members of a medical scheme fund.
What is it?
An Additional Medical Expenses Tax Credit (also known as an “AMTC”) is a rebate which reduces the normal tax a person pays. This rebate is non-refundable and any portion that is not allowed in the current year can’t be carried over to the next year of assessment. It applies for years of assessment starting on or after 1 March 2014 (from the 2015 year of assessment) and is mostly calculated against qualifying “out of pocket” medical expenses paid for you and any dependent. It is a rebate given in addition to the medical scheme fees tax credit.
These are amounts paid and not recovered during the year of assessment in respect of you or any dependent, and include:
A dependent is:
The AMTC will depend on a person’s age and whether the person, his or her spouse or any of their dependent(s) has a disability.
25% of the amount by which the sum of the amounts listed below exceeds 7,5% of the taxable income (excluding retirement fund lump sum benefits, retirement fund lump sum withdrawal benefits, and severance benefits) before taking into account this AMTC:
Let’s assume Susan pays the medical expenses for her family. Susan is married and has 3 children.
For the 2018 tax year we make the following assumptions: