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Can I claim for Medical Aid and Provident Fund contributions at the TAX year end?

Posted 7 December 2015 under Tax Q&A


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Goolam says:
2 December 2015 at 23:13

In my new job I am getting a CTC of which only income TAX will be deducted. Previously Medical Aid and Provident Fund was deducted from the CTC then the remainder taxed, as a result I paid less TAX. In the new job I will have to pay med aid and provident after my income has been TAXED. Will I am be able to claim at the TAX year end for this?

Will I be able to get the same amounts as if the amounts where being deducted from the CTC before being TAXED?

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TaxTim TaxTim says:
4 December 2015 at 12:46

Did you previous employer pay medical aid for you? And now you need to pay it yourself?

Same for provident?

Goolam says:
4 December 2015 at 14:38

It was part of the ctc however the employer removed it off the ctc. So it reflected in the irp 5. Now I would have to contribute personally for an ra as the company does not have a group prov fund. I would also have to fund my medical aid as well. So I would have claim back? The question is will I get the same tax benefit as the provident fund and med aid as before.

TaxTim TaxTim says:
7 December 2015 at 12:54

Up until 1 March 2016, employee contributions to a provident fund were not allowable as a deduction and the employer portion was regarded as a tax free fringe benefit - therefore there would have been no tax consequences as a result of the provident fund contributions. Medical aid is not a salary deduction but rather a credit off your total tax payable. You will receive the same tax credit (i.e saving) when you contribute to a medical aid yourself. You will be able to claim for your RA (now paid personally) which will result in a tax saving.

Please make use of our SARS income tax calculator to see the tax you will pay on your new salary (and compare to the prior salary).


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