The full amount is taken off gross income and as it is allowed as a tax deduction and not a medical credit and therefore reduces the taxable income before PAYE is calculated.
Teeceesays: 8 August 2013 at 11:45
In both cases? What I want to clarify is if the employer pays both employer and employee contributions the whole amount is deducted from employees taxable income.
What SARS CODE is used?
TaxTimsays: 8 August 2013 at 16:21
For employees under 65 years there is a fringe benefit so source codes 3810 would be used under income for the employer portion and source code 4005 for the actual deduction which is taken off the account, so the whole amount and then 4474 for the employer's contribution.
Of over 65's there is only source code 4005.
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