At the age of 16 years or older, you may obtain a code 1 learners licence which will allow you to drive only
- a motor cycle type vehicle with a maximum engine capacity of 125 cc
- a moped where pedals are available to assist the engine or motor
If you are the holder of a valid code 1 learners licence and 18 years old or older, you may drive a motor cycle type vehicle with any engine capacity.
At the age of 17 years or older you may obtain a code 2 learners licence which will allow you to drive any motor vehicle excluding
- motor cycle type vehicles
- any motor vehicle of which the tare exceeds 3 500 kg
- a bus or goods vehicle of which the gross vehicle mass exceeds 3 500 kg
- an articulated motor vehicle of which the gross combination mass exceeds 3 500 kg
At the age of 18 years or older you may apply for a code 3 learners licence which allows the driving of any motor vehicle excluding motor cycle type vehicles.
Once you have obtained a learners licence, you may drive the type of vehicle for which the learners licence is valid. However, you must be accompanied by a driver licensed for the specific vehicle, except in the case of a motor cycle because a learner driver may not transport another person on a motor cycle.
You may be allowed to prebook a learners licence test spot at a call centre. Note that this is not the application, only courtesy to fit your diary. You must apply for a learners licence in person at a driving licence testing centre. You must submit the following:
- duly completed form LL1
- Two identical black and white or colour driving licence type photographs of yourself
The driving licence testing centre will provide you with a date and time on which you will be allowed to complete the learners licence test. You may apply before the qualifying age (see above), but at the time of the of the scheduled learners licence test, you have to be old enough in order to be issued with the learners licence. The learners licence test is a written test to verify your knowledge of the rules of the road, road traffic signs and the controls of a motor vehicle.
If you have passed the test, an issue fee is required to issue the learners licence certificate. One of your photos and your signature will be attached to the certificate and this should be covered with security tape.
You must hold a valid learners licence to be tested for the issuing of a driving licence, i.e. the learners licence must still be valid on the driving licence test appointment date. The learners licence remains valid for its full period unless cancelled by a court order. You may thus, for example, hold a learners licence and if you fail a (practical) driving licence test, be tested again within the period of validity of the learners licence.
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.