Page 11 - F6 Slide - Taxation - Lecture Day 3 F

Income from Employment

Medical Deductions

• A natural person can get a relief for medical aid contributions

and medical expenses incurred.

• A natural person can get medical tax credits on the normal tax

liability.

• The s 18 deduction for medical expenses has been replaced

with a dual tax credit system in respect of (i) medical scheme

contributions and (ii) qualifying medical expenses. Under this

system, a set level of credits will be allowed for medical aid

contributions (with annual upward adjustments), with certain

excess contributions and out-of-pocket expenses also eligible

for tax credits (instead of deductions). All credits will remain

non-refundable.

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