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SARS: Updated Guide on the Determination of Medical Aid Tax Credits
- 16 July 2025
- Tax
- South African Accounting Academy
Summary:
SARS has issued an updated Guide on the Determination of Medical Aid Tax Credits for the new 2025 tax season.
Article:
This guide provides general guidelines (and 20 examples) regarding the medical scheme fees tax credit (MTC) and additional medical expenses tax credit (AMTC) for income tax purposes.
The two types of credits are dealt with separately in this guide, are the MTC (dealing with contributions to a medical scheme) and the AMTC (which replaced the deduction of the medical allowance) dealing with other qualifying medical expenses, including out-of-pocket expenses.
Contents:
- Part A – Section 6A rebate (medical scheme fees tax credit)
- Part B – Section 6B rebate (additional medical expenses tax credit)
- Employees’ tax implications
- How to claim the medical scheme fees tax credit and additional medical expenses tax credit
- How to object to the disallowance of a medical scheme fees tax credit or additional medical expenses tax credit
- Other information
- Annexure A, which contains the legislation applicable to section 6A (which provides for the MTC) and section 6B (which provides for the AMTC)
- Annexure B, which contains the prescribed list of expenditure for purposes of paragraph (c) of the definition of “qualifying medical expenses” in section 6B(1) of the Act.
This guide takes into consideration the amendments up to and including the Revenue Laws Second Amendment Act 44 of 2024, which was promulgated on 24 December 2024. As the year of assessment of an individual ends on the last day of February, the amendments apply to the years of assessment commencing on or after 1 March 2024 (that is, the 2025 year of assessment).
Click here to download the 51-page Guide:
Relevance to Auditors, Independent Reviewers & Accountants:
- The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, accountant and tax practitioner, you need to be aware of the latest guides and other publications issued by SARS.
- You might need to advise clients on how to correctly claim rebates on their medical contributions and expenses.
Relevance to Your clients:
- Entities and individuals have a duty to comply with the Income Tax Act.
- Individuals need to know how to correctly claim rebates on their medical contributions and expenses.