Investment income derived from interest and certain foreign dividends:
In addition, all domestic dividend income (except dividends distributed by a fixed property company and certain foreign source dividends) will be exempt from tax.
Special rules apply to the taxation or exemption of dividends received from controlled foreign companies (CFC), depending on the level of shareholding and other conditions. We recommend that our clients seek expert tax advice in this regard.
Interest is exempt where earned by non-residents who are physically absent from SA for 183 days or more per annum and who are not carrying on business in SA.
The exemption for foreign dividends and interest is limited to R3 700
65 and older... no limit
Younger than 65 years
Medical aid contributions may be claimed as a credit against tax payable as follows :
Other medical exenses which may be claimed as a deduction against taxable income include:
The taxpayer may deduct the other medical expenses to the extent that it exceeds 7.5% of taxable income before this deduction and any retirement lump sum benefit
Taxpayers under the age of 65 may claim all qualifying medical expenses, where the taxpayer or the taxpayer's spouse or child is a handicapped person, without the 7.5% limit.
Any medical expenses paid by the estate of a deceased taxpayer are deemed to have been paid by the deceased taxpayer on the day before his or her death.
If paid by the employer of the taxpayer, the amount paid must, to the extent that it has been included in the income of the taxpayer as a taxable benefit in terms of the Seventh Schedule, be deemed to have been paid by that taxpayer.
As from 1 March 2010 the full contribution by an employers is a fringe benefit.
The fringe benefit has no value where the contribution is in respect of :