I pay R150.00 per month toward a medical aid fund for myself and my daughter (6 years). Do I qualify for the full monthly tax credit of R257.00 X 2 = R514.00 or will this be limited to my actual monthly fund contribution?
Your credit will be limited to your monthly contribution unfortunately.
TaxTimsays: 19 March 2014 at 12:08
Does your employer contribute to the fund at all?
Sannie DeNeckersays: 19 March 2014 at 22:28
Thank you very much for your quick response.
NO - My employer does not contribute as I am self employed.
Could I asked you please to clarify this term - "Contribution to a medical aid (without regard to the quantum of the contribution) will qualify the taxpayer to receive a credit of fixed amount, based on the number of the taxpayer?%u20AC%u2122s dependents on the medical aid scheme." ?
I appreciate your assistance and must add : you are doing a great job.
TaxTimsays: 20 March 2014 at 14:39
Thanks for the positive words!
Essentially every taxpayer who contributes to a medical aid receives a set RAND amount as a credit (take off) from their tax payable. SARS allows a certain amount for the primary member and one secondary member and then any further members on the medical aid also receives a monthly credit of a different amount.