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A medical practitioner’s deduction of subscription fees paid to the Medical Protection Society

Wednesday, 03 December 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Our client is a medical practitioner but is not practising in her personal name.  She works as a consultant for a laboratory and a clinic and therefore receives an IRP5 with a 3601 income source code.  During the 2014 tax year our client has paid Rxxx in subscription fees for the Medical Protection Society.

We would like to know, as he is still practising as a medical practitioner, (even though he is a salary earner) can we claim the subscription fees as an income tax deduction?

A: The deduction of the fees paid to the Medical Protection Society is denied in terms of section 23(m) of the Income Tax Act.  From the facts it doesn’t appear that he is an agent or representative whose remuneration is normally derived mainly in the form of commissions based on his sales or the turnover attributable to him.  Refer to SARS’s interpretation note 13 for more information regarding this.  

The deduction would normally be allowed under section 11(a) if the source of the income was not any employment in respect of which she derives any remuneration.  

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.

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