Page 13 - GA Maclachlan Tax Guide 2024

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 × 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 × 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)

HOME OFFICE COST

Employees:
For an employee to claim home office cost deduction, the home office must
be specifically equipped for the purpose of the employee’s trade, regularly and
exclusively used for such purposes, and:
■ if the remuneration earned is mainly in the form of commission or other
similar variable payments, then home office cost can be deducted if the
duties of such employee are mainly performed otherwise than in an office
provided by his or her employer, or
■ If the remuneration earned is not mainly in the form of commission or other
similar variable payments, then home office cost can be deducted if the
duties of such employee are mainly performed in such home office
Independent contractors:
Taxpayer not earning income from employment can deduct home office cost
incurred in the production of income from a trade being carried on that is not of a
capital nature� However, private and domestic expenditure cannot be deducted�
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