To apply for registration of a vehicle built up by using various parts you will need the following:
- A duly completed application form RLV.
- Your RSA identity document (if you are a local resident) or an identity document issued by a foreign country (if you are a person not permanently resident in the Republic) or a traffic register number certificate.
- A certificate of incorporation or name change as issued in terms of the Companies Act if the vehicle is to be registered to a company.
- A founding statement or a certificate of name change issued in terms of the Close Corporations Act if the vehicle is to be registered to a close corporation.
- An affidavit on form SOA (which can be downloaded from this website) stating the parts used and the person from whom such parts were acquired. You must attach the receipts of the purchase or donation of such parts to this form.
- If such motor vehicle has been built up from a motor vehicle which has become permanently unfit for use as a motor vehicle and has been deregistered, the deregistration certificate in respect of such motor vehicle, or an affidavit containing evidence of the fact that the motor vehicle was previously permanently unfit for use.
- A South African Police Service clearance of the motor vehicle.
- A mass measuring certificate. Please note the following:
- In order to obtain a mass measuring certificate it is advised that you contact your local registering authority for the contact details of a facility that offers this service.
- A South African Police Service clearance will only be issued after your registering authority has issued you with a referral. After the referral has been issued the registration certificate of the vehicle has to be presented to the SAPS in order for the process to be initiated.
- Should you be submitting an affidavit you are advised to contact your local registering authority regarding the level of detail expected.
- The registering authority will perform an assessment of your application and you will pay the fees as prescribed by your province, if the application is acceptable.
A code 3 vehicle is ‘Built-up’
The state indicates that the
- Source of the vehicle is not a known manufacturer or
- Vehicle has at any stage been reported as unfit for use (scrapped). The choice to declare a vehicle unfit for use, is that of the owner. The owner notifies the authority of his decision. The title- holder has to deregister the vehicle 3 months after the owner decided to scrap the vehicle.
E-NaTis Codes
The four life cycle status codes for a motor vehicle are:
Code 1 – New motor vehicles delivered by a dealer to the first owner.
Code 2 – A code 2 vehicle is a vehicle that has more than one owner, code 2 refers to the status of the vehicle.
Code 3 – A code 3 motor vehicle is a code 1 or 2 motor vehicle involved in an accident, and subsequently being declared unfit for use as a motor vehicle. Such motor vehicles may be rebuilt, however, the code 3 status will reflect on the allocation, the vehicle will have to undergo stringent procedures set out in the legislation. A motor vehicle that is “built-up or permanently unfit for use” when the extent of the damage includes structural defects that require substantial rebuilding.
Code 4 – A code 4 vehicle is permanently unfit for use on the road. This vehicle status will
be permanently demolished. This vehicle can only be used for spare parts.
Tax and Insurance in South Africa: What You Need to Know in 2025
In South Africa, understanding the relationship between tax and insurance is essential for protecting your financial future and making the most of available tax benefits. Whether you're an individual, a freelancer, or a business owner, the smart use of insurance can help you reduce your tax liability and safeguard your assets.
Why Insurance Matters for Tax in South Africa
Insurance is more than just a safety net—it can also have a direct impact on your tax situation. From medical insurance to business insurance, certain premiums and policies may qualify for deductions or influence how you declare your income and expenses to SARS (the South African Revenue Service).
- Tax Deductions: Certain insurance premiums, especially related to medical schemes and business cover, may offer tax advantages.
- Asset Protection: Insurance helps manage risk, ensuring you’re financially secure when unexpected events occur.
- Estate Planning: Life insurance can play a key role in reducing estate duty and ensuring a smooth transfer of wealth.
Types of Insurance and Their Tax Implications
1. Medical Insurance (Medical Schemes)
If you're contributing to a registered medical aid, you're entitled to a Medical Scheme Fees Tax Credit (MTC). This credit is a fixed amount per month for you and your dependents and reduces your overall tax liability.
2. Life Insurance
While life insurance pay-outs (on death) are generally not subject to income tax, they can be considered when calculating estate duty. Policies structured under a trust or with specific beneficiaries may help reduce the overall tax burden on your estate.
3. Short-Term Insurance (Vehicle, Home, Contents)
Personal short-term insurance is not tax-deductible for individuals. However, if you use part of your home or vehicle for business, the portion of insurance premiums related to business use may be claimed as a business expense.
4. Business Insurance
For companies and self-employed individuals, business insurance premiums—such as professional indemnity, commercial property cover, or key person insurance—are usually tax-deductible as operating expenses.
5. Disability and Income Protection Insurance
The tax treatment of disability insurance changed in recent years. Payouts from income protection insurance are now generally taxed as income, but premiums are not tax-deductible. Understanding this shift is important when planning your cover.
Tax Tips to Maximise Your Insurance Benefits
- Keep Detailed Records: Always keep documentation of insurance premiums, especially those linked to business or medical expenses.
- Consult a Tax Practitioner: SARS regulations around insurance and tax can be complex. A registered tax advisor can help ensure you claim all available deductions correctly.
- Review Policies Annually: Update your insurance portfolio regularly to ensure your cover aligns with your income, expenses, and current tax laws.
- Use Structuring Wisely: For high-net-worth individuals, structuring life insurance policies within a trust can reduce estate duty exposure.
Frequently Asked Questions: Tax and Insurance in South Africa
Q: Can I deduct life insurance premiums from my South African taxes?
A: No, life insurance premiums are generally not deductible. However, they may play a key role in estate planning.
Q: Are medical aid contributions tax-deductible?
A: Not exactly. Instead, you receive a Medical Tax Credit—a fixed monthly rebate that reduces your tax payable.
Q: Can I claim car insurance as a tax deduction?
A: Only if the vehicle is used for business purposes. You can claim the business-use portion of your vehicle insurance.
Q: Is business insurance tax-deductible in South Africa?
A: Yes. Business insurance premiums related to company operations are generally tax-deductible.
Final Thoughts
In South Africa, insurance isn't just about protection—it's a strategic tool for managing your tax liability, preserving wealth, and supporting long-term financial stability. Whether you’re reviewing your medical insurance, planning your estate, or choosing the right business insurance, it’s essential to understand how these choices affect your tax outcomes.
With the right advice and a well-structured insurance portfolio, you can reduce your tax bill while ensuring comprehensive protection for yourself, your family, or your business.