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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.

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

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