Summary of "Disability Rights Awareness Webinar"

Summary of “Disability Rights Awareness Webinar”

Main Ideas and Concepts

The webinar, hosted by the South African Revenue Service (SARS) during Disability Rights Awareness Month, focused on educating persons with disabilities, their families, caregivers, and stakeholders about tax matters—particularly tax deductions, rebates, and compliance related to disability. It also covered SARS’s procurement policies aimed at inclusive economic participation of persons with disabilities.

Key Lessons and Topics Covered

1. Introduction and Webinar Guidelines

Hosted by Yuan Portita, Program Director of the Gender Equality and Persons with Disability Unit, SARS.
Participants were encouraged to ask questions via chat or email and complete a feedback survey.
The session was divided into two parts: presentations by subject matter experts followed by a live Q&A.

2. Welcome Address by Mrs. Mandisa Kenny

Experienced legal professional and advocate for social justice.
Emphasized the importance of diversity and inclusion, not just tolerance.
Highlighted the partnership between SARS and disability organizations to make tax services accessible and respectful.
Encouraged active engagement and feedback to improve services.
Stressed the role of tax compliance and inclusive procurement in building an inclusive economy.

3. Presentation on Tax Relief and Medical Tax Credits by Mr. Gunard Burger

Legal specialist with over 30 years of tax law experience and a person with a disability.

Definition of Disability for Tax Purposes:

Moderate to severe limitation in functioning due to physical, sensory, communication, intellectual, or mental impairment lasting over a year and certified by a registered medical practitioner.
Aligned with the UN Convention on the Rights of Persons with Disabilities.

Who Qualifies as a Dependent?

Spouse, child (including child of spouse), or family member for whom the taxpayer is responsible for care and support.
Foster children or children under custodianship do not qualify.

Tax Credits and Rebates:

Persons with disabilities under 65 can claim 33⅓% of eligible medical and disability expenses incurred and paid during the tax year.
Persons over 65 get the same percentage regardless of disability.
Mild physical impairments qualify for a 25% rebate on expenses exceeding 7.5% of taxable income.
Medical tax credit relates to medical aid contributions; additional medical expenses tax credit covers out-of-pocket costs related to disability.

Qualifying Expenses:

Must be directly related to the disability (e.g., wheelchair, personal care attendants).
Expenses not linked to the disability (e.g., GPS for non-visually impaired) are not claimable.
Medical expenses must not be recoverable from other sources (e.g., medical aid).

ITRD Form (Confirmation of Diagnosis of Disability):

Must be completed and signed by a medical practitioner.
Valid for 10 years if disability is permanent and diagnosed after March 1, 2019; otherwise valid for 5 years.
Diagnostic criteria were developed in consultation with relevant professional bodies.

Documentation Required:

Proof of medical scheme contributions.
Medical aid certificates and tax reports.
Schedule of expenses with dates, service providers, and amounts.
Prescriptions required for medicines; over-the-counter vitamins only claimable if prescribed.

Examples of Claimable Expenses:

Nursing home fees (for residential care facilities for persons with disabilities).
School fees including costs for classroom assistants (limited to public school fees).
Travel expenses for acquiring qualifying goods or services.

Important Notes:

Taxpayers must be registered and pay taxes to be eligible for credits.
Expenses paid by third parties cannot be claimed by the taxpayer.
Only taxpayers who incur and pay expenses during the tax year can claim.

4. Procurement and Inclusion Presentation by Mr. Ponzilla Sundang

Representing SARS Commercial Services and Strategic Sourcing division.

Broad-Based Black Economic Empowerment (BBBEE) and Transformation:

Aims to redress historical imbalances affecting Africans, black people, Indians, and persons with disabilities.
SARS aligns with national development plans and legal frameworks to promote inclusion.

Procurement Policies:

Preferential procurement policy framework (2022) requires setting BBBEE-specific goals.
Goals include promoting ownership and participation by black people, women, youth, rural communities, and persons with disabilities.

Inclusion of Persons with Disabilities:

SARS runs campaigns and roadshows to engage and support persons with disabilities.
Aims for 50% of beneficiaries in certain funding programs to be persons with disabilities.

Supplier Development and Support:

Incubation and training programs for small and medium enterprises (SMEs), including those owned by persons with disabilities.
Training covers registration, compliance, financial management, quotation submission, and maintaining BBBEE status.

Procurement Process:

Suppliers must be registered on the Central Supplier Database (CSD).
Mandatory documents include tax clearance certificates, BBBEE certificates, and financial statements.
Compliance with the Public Finance Management Act and preferential procurement regulations is strictly monitored.
BBBEE points system: 80% price, 20% BBBEE score.

Monitoring:

Continuous monitoring and auditing of supplier compliance with BBBEE requirements, including persons with disabilities.

5. Q&A Session Highlights

Taxation and Donations: Small financial donations from charities are declared as income but exempt from tax.
Medical Expense Claims: Out-of-pocket expenses like wound care supplies and medical equipment can be claimed if related to disability.
Tender Documentation: Tax clearance certificate, BBBEE certificates, financial statements (or formation letter for new entities) required.
Income Reporting for Volunteers: Income from volunteering or part-time contracting must be declared; normal tax thresholds apply.
Disability Confirmation: GPs can confirm disability if supported by specialist reports; physiotherapists can confirm physical disabilities on the ITRD form.
Non-submission of BBBEE Documents: Does not disqualify suppliers but affects scoring and chances of contract award.
Record Keeping for Medical Expenses: Maintain detailed schedules and proof of payment.
Disability Registration Issues: No formal registration with SARS; disability status indicated annually on tax returns. Supporting documents can be uploaded online via e-filing or SARS query system.
Monitoring BBBEE Compliance: SARS audits and monitors supplier compliance monthly and annually.
Third-Party Payments: Expenses paid by others cannot be claimed by the taxpayer.
Claims for Deaf-Blind Parents: Certain expenses like guide dog upkeep can be claimed if listed and necessary.

Methodology / Instructions for Claiming Disability-Related Tax Benefits

Determine if you or your dependent qualifies as a person with a disability under the tax definition.
Obtain a completed and signed ITRD form from a qualified medical practitioner.
Keep detailed records and proof of all medical and disability-related expenses incurred and paid within the tax year.
Complete your annual income tax return (ITR12), indicating disability status and claiming applicable medical tax credits.
Attach or retain supporting documents (ITRD form, schedules, medical aid certificates) in case of audit.
Submit questions or issues to SARS via chat, email, or during webinars for clarification.
For procurement opportunities, register on the Central Supplier Database and comply with BBBEE and SARS procurement requirements.
Participate in supplier development and training programs if applicable.

Speakers / Sources Featured

Yuan Portita – Program Director, Gender Equality and Persons with Disability Unit, SARS
Mrs. Mandisa Kenny – Legal Professional, Chairperson and Advocate for Social Justice, Leader of Gender Equality and Persons with Disability Unit, SARS
Mr. Gunard Burger – Legal Specialist, Centralized Litigation Unit, SARS; Expert on Disability Tax Relief
Mr. Ponzilla (Puma) Sundang – Procurement Specialist, Commercial Services, SARS; Specialist in BBBEE and Supplier Development
Mr. Mark Rogers – Tax-Based Boarding Unit, Eastern Cape, SARS; Q&A Facilitator

End of Summary