Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

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

Posted 7 December 2015 under Tax Questions


Hi, I'm Tim!
I'll help you do your Tax Return with Confidence
Quickly, Easily
And Correctly
Do your Tax Online with Expert Help from Me, Step-by-Step.
LEARN MORE

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
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?

This entry was posted in Tax Questions and tagged , , , . Bookmark the permalink.

TaxTimTaxTim 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.


TaxTimTaxTim 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).


Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Hi, I'm Tim!
I'll help you do your Tax Return with Confidence
Quickly, Easily
And Correctly
Do your Tax Online with Expert Help from Me, Step-by-Step.
LEARN MORE