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Thread: New Tax - Medical Tax Credits

  1. #1
    Gold Member daveob's Avatar
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    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
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    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.
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