(2) In determining the normal tax payable by any natural person there must be deducted an amount, to be known as the additional medical scheme fees tax credit, equal to the sum of the amounts allowed to that natural person by way of rebates under subsection (3).
[Subsection (2) substituted by section 9 of Act 15 of 2016 effective on 19 January 2017]
(3) The amount of the additional medical expenses tax credit must be-
(a) where the person is entitled to a rebate under section 6(2)(b),the aggregate of-
(i) 33,3 per cent of so much of the amount of the fees paid by the person to a medical scheme or fund contemplated in section 6A(2)(a) as exceeds three times the amount of the medical scheme fees tax credit to which that person is entitled under section 6A(2)(b); and
(ii) 33,3 per cent of the amount of qualifying medical expenses paid by the person;
(b) where the person, his or her spouse or his or her child is a person with a disability, the aggregate of-
(i) 33,3 per cent of so much of the amount of the fees paid by the person to a medical scheme or fund contemplated in section 6A(2)(a) as exceeds three times the amount of the medical scheme fees tax credit to which that person is entitled under section 6A(2)(b); and
(ii) 33,3 per cent of the amount of qualifying medical expenses paid by the person; or
(c) in any other case, if the aggregate of-
(i) the amount of the fees paid by the person to a medical scheme or fund contemplated in section 6A(2)(a) as exceeds four times the amount of the medical scheme fees tax credit to which that person is entitled under section 6A(2)(b); and
(ii) the amount of qualifying medical expenses paid by the person,
exceeds 7,5 per cent of the person’s taxable income (excluding any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit and severance benefit), 25 per cent of the excess.
[Paragraph (c) substituted by section 3 of Act 43 of 2014 effective on 1 March 2014]
(4) For the purposes of this section, any amount contemplated in subsection (3) or the definition of ‘qualifying medical expenses’ 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.
(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 (3) 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 6 of Act 23 of 2018 effective on 17 January 2019]