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Where can one find more information on the tax treatment of income protection policies of the TLAB?

10 March 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Where can we get more information on the tax treatment of income protection policies introduced by the Taxation Laws Amendment Act 2013, taking effect on 1 March 2015?

A: Section 10(1)(gI) of the Income Tax Act(ITA) was inserted as an exemption to exclude from income tax insurance policy benefits as a result of illness or disablement for which no income tax deduction was available. In this regard section 11(r) of the ITA was inserted to prohibit such deduction of the premium. A taxable benefit will also apply to any premiums paid by an employer for the benefit of or on behalf of the employee in terms of para 2(k) read with 12C of the Seventh Schedule of the ITA.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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