How do I claim tax back from SARS?

To claim a tax refund from the South African Revenue Service (SARS), you need to follow a specific process. Keep in mind that the process might change, so it’s recommended to visit the official SARS website or contact them directly for the most up-to-date information. As of my last update in September 2021, here are the general steps you would typically follow to claim a tax refund from SARS:

  1. Gather Necessary Documents: Collect all the relevant documents, such as your IRP5 (employee tax certificate) from your employer, proof of any deductions or expenses, and any other supporting documentation required for your claim.
  2. Register on eFiling: If you haven’t already, register for an eFiling account on the SARS eFiling website (www.sarsefiling.co.za). This online platform allows you to submit your tax returns, claim refunds, and communicate with SARS electronically.
  3. Log In and Access Your Return: Log in to your eFiling account and navigate to the “Returns” section. Access the relevant tax year’s return that you want to submit.
  4. Complete the Return: Fill out the tax return form accurately and thoroughly. Make sure you include all the relevant income, deductions, and expenses to ensure your claim is correct.
  5. Submit the Return: Once you’ve completed the return, review it for accuracy and submit it electronically through the eFiling platform.
  6. Wait for Assessment: After submitting your return, SARS will assess it. This process may take some time, and SARS might request additional information or documentation to verify your claim.
  7. Receive the Assessment: SARS will send you an assessment indicating whether your refund has been approved and the amount you are eligible to receive. This assessment will be sent to your eFiling account, and you will also receive an SMS notification.
  8. Accept the Assessment: If you agree with the assessment, you can accept it on the eFiling platform. If there are any discrepancies or issues, you can follow the instructions on how to address them.
  9. Receive the Refund: Once you’ve accepted the assessment, SARS will process your refund. The refund will be deposited into the bank account you provided during the eFiling process.

Remember that the steps and requirements might vary based on your individual circumstances and any changes in SARS procedures. It’s always a good idea to consult the official SARS website or contact SARS directly for the most accurate and current information regarding claiming tax refunds.


Tax and Insurance in South Africa 2025

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.