I make a medical plan contribution of R850.00 each month. this amount includes the employers' contribution. The contributions are kept in a separate bank account and not controlled/managed by organisations like Discovery Life etc, therefore I cannot provide a tax certificate for this medical plan. What should I do in this case?
What do you mean a separate bank account, who do you pay it to?
KKsays: 20 November 2014 at 9:13
OK, the employer deducts R425.00 off my gross salary and also contributes R425.00 (total amount per month towards the medical plan is R850.00). The employer then keeps the money in a separate bank account that is linked to the organisation for the benefit of employees.
Basically it works in the following way: if you fall sick or have a health problem you would go to the doctor of your choice, pay cash for whatever service rendered by the doctor/health care provider/pharmacist etc, keep the receipts and claim back the monies used every second month.
TaxTimsays: 20 November 2014 at 16:51
You cannot claim this as a medical aid contribution as the scheme is not registered. You can claim this amount as out of pocket medical expenses.
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