Results 1 to 2 of 2

Thread: New Tax - Medical Tax Credits

  1. #1
    Gold Member daveob's Avatar
    Join Date
    Feb 2008
    Thanked 118 Times in 103 Posts

    New Tax - Medical Tax Credits

    Just doing some comparison calculations on the new Medical Tax Credits.

    The law says that in addition to the tax credit ( R9216 in the example below ), I can claim expenses ( & contributions ) LESS ( 4 x the Tax Credits ), Limited to the amount in EXCESS of 7.5% of taxable income.

    So if :
    Contributions = 49,510.00
    Tax Credit (230+230+154+154)*12 = 9,216.00 this would be deducted from the tax payable.
    Contributions above Credit = 40,294.00
    Less Tax Credit x 4 = -36,864.00
    Excess Claimable = 3,430.00
    Limited to 7.5% of Taxable Income ( of 126,000.00 ) = Not Claimable = 9,450
    Additional Claimable = 0

    Questions :

    1. is the 7.5% of taxable income calculated using the taxable amount BEFORE or AFTER the Primary Rebate ?

    2. is the Additional Claimable ( if any ) deducted from the taxable income ( like in the old system ), or deducted from the Tax Payable ( like the new tax credits ) ?
    Watching the ships passing by.

  2. #2
    Diamond Member wynn's Avatar
    Join Date
    Oct 2006
    east london
    Thanked 623 Times in 522 Posts
    I got an SMS from SARS this morning telling me that the new medical claim scales were explained on the SARS website.

    I haven't looked yet.
    "Nobody who has succeeded has not failed along the way"
    Arianna Huffington

    Read the first 10% of my books "Didymus" and "The BEAST of BIKO BRIDGE" for free
    You can also read and download 100% free my short stories "A Real Surprise" and "Pieces of Eight" at

Similar Threads

  1. Medical Aid
    By Singhms in forum General Business Forum
    Replies: 32
    Last Post: 20-Aug-13, 01:36 PM
  2. Medical Aid
    By Wiele in forum Tax Forum
    Replies: 9
    Last Post: 27-Apr-12, 12:05 PM
  3. medical aid
    By murdock in forum General Chat Forum
    Replies: 1
    Last Post: 18-Jan-12, 11:10 PM
  4. medical aid application
    By nixs in forum General Chat Forum
    Replies: 1
    Last Post: 29-Jun-11, 09:43 AM
  5. Anglo Coal creates R7bn operation for BEE credits
    By Dave A in forum BEE and Employment Equity Forum
    Replies: 0
    Last Post: 09-Feb-07, 08:05 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts