Print Page
News & Press: Technical & tax law questions

Are income protection policy contributions still tax deductible?

Monday, 10 March 2014   (0 Comments)
Posted by: Author: SAIT Technical
Share |

Author: SAIT Technical

The answer to this query is based on legislation as at 2014/03/10.

Q: Could you please advise us of the following.  Are income protection policy contributions still tax deductible for tax individual taxpayers.  Some guides are giving a definite clause that they are no longer deductible whilst other are just ignoring the fact. 

A: As from 1 March 2015 (2016 tax year):- Any premiums paid by an employer for the benefit of an employee will be treated as a taxable benefit;- The employee will not be entitled to a tax deduction of the corresponding value;- An individual will not qualify for a tax deduction in respect of his or her premium paid; and- All policy pay-outs will be tax-free, irrespective of whether historical premiums qualified as tax deductions and irrespective of whether the policy pay-out is in the form of a lump sum or an annuity.- Notwithstanding the increase in PAYE to be suffered by an employee, employers will also bear an increase to their skills development levies and unemployment insurance fund contributions costs.



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.

  • Tax Practitioner Registration Requirements & FAQ's
  • Rate Our Service

    Membership Management Software Powered by YourMembership  ::  Legal