Medical aid tax credit for 2013. Single employee on medical aid and no beneficiaries. Under 65.
Say the employee earns 72k a year, the employer paid R11,600 med and the employee paid R3,720 med. So total med contributions were R 15,320.
Am I correct in saying in the tax computation, R 72,000 + fringe benefit of R 11,600 = Gross income.
Then work out income tax payable on that figure, which is R 15048.00 less the rebate of R 11,040 then do I deduct the full med aid tax credit of R 2760? = R 1248 income tax payable for the year?
This is quite substantially less than 2012's comp.
Is this correct?