6A.      Medical scheme fees tax credit

(1)     In determining the normal tax payable by any natural person there must be deducted an amount, to be known as the medical scheme fees tax credit, equal to the sum of the amounts allowed to that natural person by way of rebates under subsection (2) , subject to subsection (3A).

[Subsection (1) substituted by section 8 of Act 15 of 2016 and section 5 of Act 23 of 2018 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(2)

 

(a)     The medical scheme fees tax credit applies in respect of fees paid by the  person to-

(i)      a medical scheme registered under the Medical Schemes Act; or

(ii)     a fund which is registered under any similar provision contained in the laws of any other country where the medical scheme is registered, that relate to benefits from that fund in respect of that person or of any person that is a dependant of that person.

[Subparagraph (ii) amended by section 5 of Act 23 of 2018 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(b)     The amount of the medical scheme fees tax credit must be-

(i)

(aa)   R364, in respect of benefits to the person, or if the person is not a member of a medical scheme or fund in respect of benefits to a dependant who is a member of a medical scheme or fund or a dependant of a member of a medical scheme or fund;

(bb)   R728, in respect of benefits to the person, and one dependant; or

(cc)   R728, in respect of benefits to two dependants; and

[Subparagraph (i), (previously subparagraphs. (i), (ii) and part of (iii)) substituted by section 4(1) of Act 42 of 2014, by section 5(1) of Act 13 of 2015, by section 6(1) of Act 13 of 2016, by section 5(1) of Act 14 of 2017, by section 4(1) of Act 21 of 2018, by section 5(1)(c) of Act 23 of 2018, by section 4(1) of Act 22 of 2020, by section 3(1) of Act 19 of 2021, by section 3(1) of Act 19 of 2022 and by section 4(1) of Act 19 of 2023 effective on 1 March, 2023 and applicable in respect of years of assessment commencing on or after that date]

(ii)      R246, in respect of benefits to each additional dependant,

[Subparagraph (ii) (previously part of subparagraph (iii)) substituted section 4(1) of Act 21 of 2018, by section 5(1)(c) of Act 23 of 2018, by section 4(1) of Act 22 of 2020, by section 3(1) of Act 19 of 2021, by section 3(1) of Act 19 of 2022 and by section 4(1) of Act 19 of 2023 effective on 1 March, 2023 and applicable in respect of years of assessment commencing on or after that date]

for each month in that year of assessment in respect of which those fees are paid.

(3)     For the purposes of this section, any amount contemplated in subsection (2) that has been paid by-

(a)     the estate of a deceased person is deemed to have been paid by the  person on the day before his or her death; or

(b)     an employer of the person is, to the extent that the amount has been included in the income of that  person as a taxable benefit in terms of the Seventh Schedule, deemed to have been paid by that  person.

(3A)   Where more than one person pay any fees in respect of benefits to a person or dependant, the amount allowed to be deducted in respect of the medical scheme fees tax credit under subsection (1) must be an amount that bears to the total amount in respect of that person or dependant contemplated in subsection (2)(b) the same ratio as the amount of the fees paid by that person bears to the total amount of the fees payable.

[Subsection (3A) inserted by section 5 of Act 23 of 2018 effective on 1 March 2018 and applies in respect of years of assessment commencing on or after that date]

(4)     For the purposes of this section a ‘dependant’ in relation to a person means a ‘dependant’ as defined in section 6B(1).

[Subsection (4) substituted by section 5 of Act 23 of 2018 effective on 1 March 2018 and applies in respect of years of assessment commencing on or after that date]

(5)

(a)     The Minister may announce in the national annual budget contemplated in section 27(1) of the Public Finance Management Act, that, with effect from a date or dates mentioned in that announcement, the amounts allowed to a natural person by way of rebates under subsection (2) will be altered to the extent mentioned in the announcement.

(b)     If the Minister makes an announcement of an alteration contemplated in paragraph (a), that alteration comes into effect on the date or dates determined by the Minister in that announcement and continues to apply for a period of 12 months from that date or those dates subject to Parliament passing legislation giving effect to that announcement within that period of 12 months.

[Subsection (5) added by section 5 of Act 23 of 2018 and applies in respect of years of assessment commencing on or after that date]