Share with your friends

South Africa: Qualifying medical expenses for tax credit

South Africa: Qualifying medical expenses, tax credit

The South African Revenue Service (SARS) released a list of specific qualifying medical expenses for application by individual taxpayers with disabilities or physical impairment from 1 March 2020.


Related content

Historically, taxpayers were able to claim medical expenses (within certain parameters) as a tax deduction in their tax returns (form ITR12) in order to determine their net taxable income. It was a so-called “above the line’’ tax deduction. However, since 2012, South Africa has applied a tax credit system whereby relief for medical expenditure is granted as a reduction when determining the tax payable. While medical tax credits are applied in respect of qualifying contributions to a medical scheme, an additional medical tax credit applies in respect of other qualifying medical expenses. Qualifying medical expenses are any amounts that are paid by a taxpayer during the relevant tax year (such as costs incurred in relation to a duly registered medical practitioner, dentist, etc.)

The SARS list of specific qualifying medical expenses are amounts paid in relation to a physical impairment or disability of the taxpayer or his/her dependants for application from 1 March 2020 (the 2021 South African tax year).

The prescribed of list of expenditures, effective 1 March 2020, is very specific and covers the following types of expenses:

  • Personal care attendant expenses
  • Travel and transportation
  • Insurance, maintenance, repairs and supplies
  • Prosthetics
  • Aids and other devices
  • Services
  • Continence products
  • Service animals
  • Alterations or modifications to assets acquired or to be acquired

Read a February 2020 report [PDF 195 KB] prepared by the KPMG member firm in South Africa

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal