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Changes to SARS Medical Aid data reporting
- 16 September 2024
- SARS Issues
- South African Accounting Academy
Summary:
The South African Revenue Service (SARS) is implementing changes to the medical aid data reporting requirements with effect from 5 October 2024.
Article:
SARS has recognised the challenges faced by taxpayers in submitting medical aid data accurately and on time.
To help simplify this process and reduce the burden on taxpayers, SARS is making changes regarding the data that is required from medical aid schemes.
Medical aid data changes include:
- Provision of data on disabled principal members and their dependents.
- Data of persons making payment on behalf of principal members.
- Separate non-allowable from the allowable expenses, currently reported as claims not paid or covered by medical schemes on the IT3(f) certificate.
For ease of reference, the changes in the latest External Medical Scheme Contributions Business Requirement Specification (BRS) (v1.09-2)
Effective 5 October 2024, medical scheme contributions must be provided in line with the requirements outlined in the new BRS.
Click here to download the BRS: https://www.sars.gov.za/wp-content/uploads/Docs/3rdParty/BRS/SARS_External-BRS-MSC_v1.09-2.pdf
This BRS had to be updated to accommodate new requirements that were requested as noted below:
- Medical aids to provide details of who is paying the medical aid contributions to tighten the process on taxpayers claiming to incur expenses on behalf of their dependants.
- Get data from medical aids with regards to the disability details of the principal member and their dependent(s).
- The split between allowable expenses (qualifying medical expenses in terms of the Income Tax Act) and non -allowable expenses (non-qualifying medical expenses in terms of the Income Tax Act claimed by taxpayers).
The medical aid data trade testing is scheduled from 16 September 2024 to 4 October 2024.
SARS encourages you to submit your third-party data for the 2024 tax year as soon as possible, but no later than 31 October 2024.
Click here to access more details:
https://www.sars.gov.za/latest-news/changes-to-sars-medical-aid-data-reporting/
Relevance to Auditors, Independent Reviewers & Accountants:
- As an auditor, independent reviewer and accountant, who is involved in providing taxation services, you should be aware of relevant information published by the regulators, e.g. SAICA and SARS, to provide information on the latest changes affecting personal income tax.
- Tax Practitioners should be aware of the guidance available on medical aid data, as well a what the effective date is.
- Tax Practitioners and taxpayers should always be aware of the guidance available on medical aid data that must be reported to SARS.
Relevance to Your Clients:
- Taxpayers should be aware of the guidance available on medical aid data that must be reported to SARS.