If an employer pays 100% of the medical contribution on my behalf what are the tax effects?

Do I now as an employee/taxpayer qualify for the medical tax credits, on submission of my IT12? The Medical Aid tax certificate is issued on my name and not the Employer as it is not a group medical scheme.

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
16 August 2012 at 18:43

Yes you do qualify for the medical tax credits as you will be taxed on the contribution made on your behalf as a Fringe Benefit. The only difference now is that the PAYE deducted each month already takes this into account so it is smaller each month. You actually receive more cash in your pocket on a monthly basis.

Tash says:
16 August 2012 at 20:13

Thanx so much, really appreciated

Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.