Page 75 - Taxation Test 4 Slides - Individuals
P. 75
INDIVIDUALS & RING FENCING
Tax Credits
• Medical credits
• Contributions to medical aid funds, as well as amounts paid for
medical expenses not covered by the medical aid
• Medical Credits system
• s6A: Medical Scheme Fees
• Monthly tax credits based on dependents:
• R257 for a single taxpayer
• R514 for a taxpayer and 1 dependent
• R172 for each additional dependent
• s6B: Additional medical Expenses
• Sum of amounts not recoverable from Medical Aid
• >65 years or family member has a disability:
• 33% of [medical contributions –3 x 6A Credit + QME]
• Other
• 25% of [(medical contributions –4 x 6A Credit) + QME –7.5% of taxable
income (Excluding retirement fund benefits)]
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