New tax set to help patients with disabilities

A new medical tax credit will be brought in in March 2012 to replace the existing medical aid cap, which will provide extra benefits for disabled patients.

At the moment, patients with disabilities currently qualify for the same cap amount as everyone else – R720 a month for each of the first two individuals that are covered by their medical aid contribution and R440 for each additional medical aid dependant.

The new tax credit will mean disabled patients will qualify for a deduction of R216 a month from their net tax for themselves, plus an additional R216 for the first medical aid dependant and R144 for each additional dependant. Under the new tax, if the employee or any of the dependants are disabled or over 65 the employee will be entitled to a further deduction from net tax of R216 a month.

Roy Warren, executive chairman of HR and payroll systems provider, NuQ, says, "The draft Act is ambiguously worded in respect of this additional tax credit, and it is possible that an additional R216 a month is to be allowed for each person over 65 or disabled."