Medical Aid Tax Credit in South Africa: 2019 Rates and Details

medical aid tax credit

Medical aid tax credit (MTC) is a non-refundable rebate for tax payers who contribute to medical aid schemes in South Africa. It reduces the tax burden, and is a fixed monthly amount that increases according to the number of dependents covered by the scheme.

Non-refundable rebate for tax-payers only

As a non-refundable rebate, unused credit cannot be carried over to the following tax year. The credit can never result in a negative balance on an annual tax statement, or a SARS refund.

As a result, people who contribute to a medical scheme, but do not earn a taxable income, cannot claim MTC.

Medical Aid Tax Credit Rates for 2019

In the 2018/19 and 2019/20 tax years, the following monthly rebates apply:

  • R310 per month for the tax payer who contributes to the medical aid scheme
  • R310 per month for the first dependent
  • R209 per month for each dependent thereafter

How to claim Medical Aid Tax Credit

There are two ways of claiming Medical Aid Tax Credit; monthly and annually:

  • If an employer pays the medical aid contribution, MTC is taken into account when monthly PAYE tax deductions are calculated. In other words, the tax the company deducts from your salary, and pays to SARS on a monthly basis, is reduced by the rebate.
  • If you pay the medical aid scheme, your annual tax liability is reduced by completing the relevant section on your tax return.

Additional Medical Expenses Tax Credit

Medical aid scheme members are also entitled to a tax rebate for certain medical expenses they pay from their own pocket, and which schemes do not cover.

The Additional Medical Expenses Tax Credit is based on age, and whether the tax payer, or a dependent, has a disability.

Qualifying medical expenses

Out of pocket expenses that qualify for the rebate include:

  • Consultations with registered medical and dental practitioners, and associate health care providers, such as optometrists, homeopaths, naturopaths, chiropractors and physiotherapists.
  • Prescribed medicines dispensed at a pharmacy.
  • Limited nursing care relating to an illness, or childbirth.

The claimable amount increases for tax payers over the age of 65 years, and for medical aid scheme members, or dependents, with disabilities.

Why not make use of the medical tax credits in South Africa, and join a medical aid scheme today? At IFC you can compare the top medical aid plans, and request a quote online.