Page 62 - SAIT Compendium 2016 Volume1

s 6A INCOME TAX ACT 58 OF 1962 s 6B
apply iro 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 bene t in terms of the Seventh Schedule, deemed to have been paid by that person.
(4) For the purposes of this section a ‘dependant’ in relation to a person means a ‘dependant’ as de ned in section 1 of the Medical Schemes Act.
[Sub-s. (4) substituted by s. 6 (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[S. 6A inserted by s. 10 (1) of Act 24 of 2011, amended by s. 3 (1) of Act 13 of 2012, by s. 6 (1) of Act 22 of 2012 (s 6 (1) never came into operation), by s. 5 (1) of Act 23 of 2013 (date of commencement deemed to have been 1 March 2013; the amendment applies in respect of years of assessment commencing on or after that date) and by s. 6 (a) and (b) of Act 31 of 2013 (date of commencement: 12 December 2013) and substituted by s. 7 (1) of Act 31 of 2013 – date of commencement: 1 March 2014. The substituted section applies in respect of years of assessment commencing on or after that date.]
6B Additional medical expenses tax credit
(1) For the purposes of this section—
‘child’ means a person’s child or child of his or her spouse who was alive during any portion of the year of assessment, and who on the last day of the year of assessment—
(a) was unmarried and was not or would not, had he or she lived, have been—
(i) over the age of 18 years;
(ii) over the age of 21 years and was wholly or
partially dependent for maintenance upon the person and has not become liable for the payment of normal tax in respect of such year; or
(iii) over the age of 26 years and was wholly or partially dependent for maintenance upon the person and has not become liable for the payment of normal tax in respect of such year and was a full-time student at an educational institution of a public character; or
(b) in the case of any other child, was incapacitated by a disability from maintaining himself or herself and was wholly or partially dependent for maintenance upon the person and has not become liable for the payment of normal tax in respect of that year;
‘dependant’ means—
(a) a person’s spouse;
(b) a person’s child and the child of his or her spouse; (c) any other member of a person’s family in respect of
whom he or she is liable for family care and support;
and
(d) any other person who is recognised as a dependant
of that person in terms of the rules of a medical scheme or fund contemplated in section 6A (2) (a) (i) or (ii),
at the time the fees contemplated in section 6A (2) (a) were paid, the amounts contemplated in paragraph (a) and (b) of the de nition of ‘qualifying medical expenses’ were paid or the expenditure contemplated in paragraph (c) of that de nition was incurred and paid;
‘disability’ means a moderate to severe limitation of any person’s ability to function or perform daily activities as a result of a physical, sensory, communication, intellectual or mental impairment, if the limitation—
(a) has lasted or has a prognosis of lasting more than a year; and
(b) is diagnosed by a duly registered medical practitioner in accordance with criteria prescribed by the Commissioner;
‘qualifying medical expenses’ means—
(a) any amounts (other than amounts recoverable by a person or his or her spouse) which were paid by the person during the year of assessment to any duly
registered—
(i)medical practitioner, dentist, optometrist,
homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopedist for professional services rendered or medicines supplied to the person or any dependant of the person;
(ii) nursing home or hospital or any duly registered or enrolled nurse, midwife or nursing assistant (or to any nursing agency in respect of the services of such a nurse, midwife or nursing assistant) in respect of the illness or con nement of the person or any dependant of the person; or
(iii)pharmacist for medicines supplied on the prescription of any person mentioned in subparagraph (i) for the person or any dependant of the person;
(b) any amounts (other than amounts recoverable by a person or his or her spouse) which were paid by the person during the year of assessment in respect of expenditure incurred outside the Republic on services rendered or medicines supplied to the person or any dependant of the person, and which are substantially similar to the services and medicines contemplated in paragraph (a); and
(c) any expenditure that is prescribed by the Commissioner (other than expenditure recoverable by a person or his or her spouse) necessarily incurred and paid by the person during the year of assessment in consequence of any physical impairment or disability suffered by the person or any dependant of the person.
(2) A rebate, to be known as the additional medical expenses tax credit, must be deducted from the normal tax payable by a person who is a natural person.
(3) The amount of the additional medical expenses tax credit must be—
(a)
(b)
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;
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
54 SAIT CompendIum oF TAx LegISLATIon VoLume 1