Guide to Discovery Tax Certificate in South Africa

In South Africa, the Discovery Tax Certificate is an essential document for individuals who have medical savings accounts through Discovery Health. This guide will provide a detailed overview of the Discovery Tax Certificate, its purpose, how to obtain it, and answer common questions related to it.

What is a Discovery Tax Certificate?

The Discovery Tax Certificate is a document issued by Discovery Health that outlines the contributions made to your medical savings account over the financial year. This certificate is crucial for tax purposes as it allows individuals to claim tax deductions for qualifying medical expenses not covered by their medical scheme.

Purpose of the Discovery Tax Certificate

• Tax Deductions: It helps members claim deductions for qualifying medical expenses on their annual tax returns.
• Financial Records: Offers a comprehensive record of medical expenses and contributions, assisting in financial planning and budgeting.

Obtaining Your Discovery Tax Certificate

1. Online via Discovery’s Website:

• Log in to your account on the Discovery website.
• Navigate to the ‘Documents’ or ‘Tax Certificates’ section.
• Select the relevant tax year and download your Discovery Tax Certificate.

1. Discovery App:

• Open the Discovery app on your mobile device.
• Go to the ‘Health’ section and find the ‘Documents’ or ‘Tax Certificates’ feature.
• Choose the tax year you need the certificate for and download it.

1. Email Request:

• You can request your tax certificate via email. Contact Discovery Health’s customer support and provide your membership details and the tax year for which you need the certificate.

1. Telephonic Request:

• Call Discovery Health’s customer service hotline and request your tax certificate. Ensure you have your membership number handy.

How to Use the Discovery Tax Certificate for Tax Filing

• Review Your Certificate: Ensure all information is accurate. It should include your medical scheme contributions, amounts paid from your savings account, and any out-of-pocket medical expenses.
• Include in Your Tax Return: Use the amounts reflected on your tax certificate to fill in the relevant sections of your income tax return form (ITR12).
• Supporting Documents: Keep your tax certificate and any related medical receipts or documents as proof of your medical expenses and contributions. The South African Revenue Service (SARS) may request these if they need to verify your claims.

Frequently Asked Questions

1. Who needs a Discovery Tax Certificate?

• Any Discovery Health member who has made contributions to a medical savings account and wishes to claim tax deductions for medical expenses.

1. Can I claim for expenses not covered by Discovery?

• Yes, the tax certificate will include such expenses, allowing you to claim them as deductions if they qualify under SARS regulations.

1. What if there are discrepancies in my tax certificate?

• Contact Discovery Health immediately to rectify any errors before filing your tax return.

1. Is the Discovery Tax Certificate the same as a medical aid contribution certificate?

• Yes, it serves a similar purpose by detailing your medical aid contributions and savings used for medical expenses throughout the tax year.

1. How long does it take to receive the certificate after requesting it?

• If downloaded directly from the website or app, it is immediate. Email and telephonic requests may take a few days to process.

1. Do I need a separate certificate for each family member on my plan?

• No, the certificate usually consolidates the information for all dependents on the plan.

1. Can I use the Discovery Tax Certificate for prior tax years?

• Yes, you can request certificates for prior years if needed for late tax filings or corrections.

The Discovery Tax Certificate is a valuable document for anyone looking to maximize their tax deductions related to medical expenses in South Africa. By following the steps outlined above to obtain, review, and utilize your tax certificate, you can ensure that you’re fully leveraging the benefits offered by your Discovery Health medical savings account. Always keep a copy of your tax certificate and related medical expense documents for your records and potential SARS audits.