Tax credits can make medical schemes more affordable

6 December 2011

When looking at medical scheme costs, members and potential members should remember that the tax subsidies for medical scheme contributions are due to change from March next year.

For taxpayers under the age of 65, the subsidy will change from a tax deduction to a tax credit. This change aims to make medical scheme membership more affordable for low-income earners. Taxpayers over the age of 65 will still be able to deduct all their medical scheme contributions and medical expenses from their taxable income.

The proposal to change the tax deduction to a tax credit has been approved by the National Assembly and will go to the National Council of Provinces in December.

Read the full article on IOL.