Sky Software
Help and User guide
 
×
Menu
Index

Disability and Impairment

In South African tax law, the terms "disability" and "impairment" have specific definitions relevant to tax deductions and credits, particularly in relation to 6B medical tax credits.
 
Disability
"Disability" refers to a long-term, severe condition that substantially limits a person’s ability to function or perform daily activities. For tax purposes, it is defined according to the diagnostic criteria in Section 6B of the Income Tax Act. A disability, therefore, must meet certain medical criteria, usually confirmed through Form ITR-DD, which a medical practitioner must complete. This designation affects eligibility for the Additional Medical Expenses Tax Credit, allowing for a more favorable tax treatment.
 
Impairment
"Impairment," on the other hand, refers to a less severe or non-permanent condition that still affects a person’s ability to perform specific activities but does not meet the strict criteria of a "disability." For example, impairments may include chronic health issues or physical limitations that impact certain functions but not to the extent required for disability status under tax law. Medical expenses related to impairments can still be claimed under Section 6B, but they do not receive the same preferential tax treatment as those classified under a "disability."
In summary, the main distinction lies in the severity and permanence of the condition, with "disability" covering long-term, substantially limiting conditions, while "impairment" covers less severe limitations​​.
 
These definitions are crucial in determining eligibility for tax credits under the Income Tax Act:
Section 6B of the Income Tax Act addresses both "disability" and "impairment" in the context of the Additional Medical Expenses Tax Credit.
 
Is there a difference between permanent and temporary disability and impairment
 
In South African tax law, "permanent" and "temporary" disabilities or impairments refer to the expected duration and stability of a condition that affects a person’s ability to perform daily activities.
 
1. Permanent Disability and Impairment
In the context of tax benefits, permanent disabilities or impairments are generally prioritized and may be eligible for more substantial deductions or credits under medical expenses.
 
2. Temporary Disability and Impairment
 
For tax purposes, both permanent and temporary conditions may qualify for medical tax credits, but the classification of a condition as a "permanent disability" has more stringent requirements and generally allows for higher deductions due to its lasting impact on daily activities.
 
Date 14 November  2024