Acts Online
GT Shield

Income Tax Act, 1962 (Act 58 of 1962)

Chapter II : The Taxes

Part I : Normal Tax

6A. Medical scheme fees tax credit

 

(1) In determining the normal tax payable by any natural person there must be deducted an amount, to be known as the medical scheme fees tax credit, equal to the sum of the amounts allowed to that natural person by way of rebates under subsection (2).

[Subsection (1) substituted by section 8 of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016)]

 

(2)        

(a) The medical scheme fees tax credit applies in respect of fees paid by the person to—
(i) a medical scheme registered under the Medical Schemes Act; or
(ii) a fund which is registered under any similar provision contained in the laws of any other country where the medical scheme is registered.
(b) The amount of the medical scheme fees tax credit must be—
(i) R286, in respect of benefits to the person;

[Subsection (2)(b)(i) substituted by section 6(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2016 (Act No. 13 of 2016) - effective 1 March 2016]

(ii) R572, in respect of benefits to the person and one dependant; or

[Subsection (2)(b)(ii) substituted by section 6(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2016 (Act No. 13 of 2016) - effective 1 March 2016]

(iii) R572, in respect of benefits to the person and one dependant, plus R192 in respect of benefits to each additional dependant,

[Subsection (2)(b)(iii) substituted by section 6(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2016 (Act No. 13 of 2016) - effective 1 March 2016]

for each month in that year of assessment in respect of which those fees are paid.

 

(3) For the purposes of this section, any amount contemplated in subsection (2) that has been paid by—
(a) the estate of a deceased person is deemed to have been paid by the person on the day before his or her death; or
(b) an employer of the person is, to the extent that the amount has been included in the income of that person as a taxable benefit in terms of the Seventh Schedule, deemed to have been paid by that person.

 

(4) For the purposes of this section a ‘dependant’ in relation to a person means a ‘dependant’ as defined in section 1 of the Medical Schemes Act.