Page 13 - Nexia Cape Town 2018 TG Digital

For additional (e�g� out-of-pocket) medical expenses incurred by individual
taxpayers, a tax rebate is available as follows:
■ Where the taxpayer is 65 and older or where the taxpayer, taxpayer’s spouse
or child is a person with a disability: 33�3% of the value of the amount
by which the aggregate of the medical scheme fees that exceed 3 3 the
standard medical scheme credits, and all qualifying medical expenses (other
than medical scheme contributions)
■ Other taxpayers: 25% of the value of the amount by which the aggregate of
the medical scheme fees that exceed 4 3 the standard medical scheme
credits, and all qualifying medical expenses (other than medical scheme
contributions), exceed 7�5% of the taxpayer’s taxable income (excluding any
retirement fund lump sum benefit, retirement fund lump sum withdrawal
benefit and severance benefit including capital gains)

TAX FREE INVESTMENTS

Any amount received from a tax free investment is exempt from normal tax (this
includes income on the investment as well as any profits arising on disposal of
the investment)� The following requirements must be met:
■ Investment must be owned by a natural person or the deceased or insolvent
estate of a natural person
■ The investment must be a financial instrument or policy that is administered
by any person or entity designated by the Minister of Finance
■ Contributions to the investment must be made in cash and are limited to
R33 000 per year and R500 000 in total (both in aggregate)
In the event where the R33 000 and R500 000 limits are exceeded, 40% of the
excess investment is treated as normal tax payable (the income on the excess
part of the investment is, however, still tax free)�

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