I have two questions with regards to persons with disabilities. The first question: For how long is the ITR-DD valid? Does a tax payer or his/her dependent who has a disability, need to get an ITR-DD from the medical practitioner, every year or is the for
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
According to the SARS guide on the Determination of Medical Tax Credits (Issue 7) “the ITR-DD needs to also be completed and endorsed by a duly registered medical practitioner22 every five years where the disability is of a more permanent nature. If the disability is temporary, the ITR-DD will only be valid for one year, which effectively means that a new ITR-DD must be completed for each year of assessment during which a disability claim is made.”
The important part is the first requirement is that it is only expenditure prescribed by SARS that qualifies. You find them in Annexure B to the guide.
The guide referred to above sets out the travel expenses on page 33 where it is said that “the qualifying travel expenses are limited to goods or services required as a consequence of disability. For example, if a person with a disability goes to the doctor with flu, the travelling expenses for this trip do not qualify for a deduction.” Actual qualifying expenses incurred and paid by the taxpayer must be deducted. However, if a private motor vehicle is used and accurate records of qualifying kilometres are kept:
The taxpayer may estimate the expenses incurred by using the rates per kilometre prescribed by the Minister of Finance. These rates are to be found in the Regulation titled “Fixing of rate per kilometre in respect of motor vehicles for the purposes of section 8(1)(b)(ii) and (iii) of the Income Tax Act, 1962”;
On page 38 the expenditure incurred and paid for a service animal required by a person with a disability in order to function or perform daily activities is listed and includes:
The cost of an animal specifically trained to be used as an aid to perform daily functions.
The care and maintenance (including food and veterinarian care) of such an animal.