South Africa

Individual - Other tax credits and incentives

Last reviewed - 13 December 2019

Medical tax credit

A medical tax credit is available in respect of medical scheme contributions for taxpayers under the age of 65. This rebate replaced the deduction that was previously available. For the tax year commencing on 1 March 2020, the monthly rebates for medical scheme contributions are as follows:

  • Taxpayer: ZAR 319.
  • First dependant: ZAR 319.
  • Every subsequent dependant: ZAR 215.

The annual rebate applicable to excess medical scheme contributions and other medical expenses is calculated as follows:

  • Taxpayer over 65 years of age: 33.3% of the amount of medical contributions as exceeds three times the amount of the medical scheme contribution credit and 33.3% of all other medical expenses.
  • Taxpayer with a disability: 33.3% of the amount of medical scheme contributions as exceeds three times the amount of the medical scheme fees credit and 33.3% of all other medical expenses.
  • Taxpayer under 65 years with no disability: 25% of the amount of the aggregate of four times the medical scheme contribution credit and other medical expenses as exceeds 7.5% of taxable income.

Tax rebates

A taxpayer is entitled to so-called tax rebates that are deducted from tax payable. The rebates have the effect of establishing tax thresholds below which no tax is payable.

For the 2021 tax year (i.e. the tax year commencing on 1 March 2020 and ending on 28 February 2021), the following rebates apply:

  • Primary rebate: ZAR 14,958 for all natural persons.
  • Secondary rebate: ZAR 8,199 if the taxpayer is 65 years of age or over.
  • Tertiary rebate: ZAR 2,736 if the taxpayer is 75 years of age or over.