Medical contribution as income and two different source codes for medical deductions? What does that
By Marc Sevitz · Updated
Second question: on a recent payslip "Medical aid tax credit applied -R646.00 appears" - could you please help with this - from where does it come, or what is reason for this credit?
Source code 4005 is the actual deduction, so the amount paid over to the medical scheme which reduces your after tax/deductions amount paid into your account. Source code 4474 is equivalent to the amount contributed by the employer and is a SARS code which will always match the 3810 Fringe Benefit. If you consider the cash component then you see the only real deduction is the one amount.
There is a credit offered against taxes payable for contributions to medical schemes which for the 2013 tax year was R230 per member for the first two members and thereafter R154 per member - both of these per month. I am not sure where the R646 comes from though.
There is a credit offered against taxes payable for contributions to medical schemes which for the 2013 tax year was R230 per member for the first two members and thereafter R154 per member - both of these per month. I am not sure where the R646 comes from though.