It is important that firearm owners should be aware of recent developments in respect of the continued validity of licences that had been issued in terms of the previous Arms and Ammuntion Act (Act 75 of 1969), commonly referred to “old green licences.”
Old green licences didn’t have an expiry date and were therefore valid until the owner died or sold the firearm. When the new act, the Firearms Control Act (Act 60 of 2000) came into existence on 1 July 2004 it prescribed that old green licences had to be renewed.https://firearms.co.za/legal/different-types-of-firearm-safes/embed/#?secret=9pgEGGlJvM
The New Act further provided that all old green licences that were not renewed, would expire on 30 June 2009 where after the possession of such firearms would become illegal.
In 2009 the SA Hunters and Conservation Association however challenged the constitutionality of the transitional provisions of the New Act in the High Court and brought an urgent application for an interim order to govern the legality of the green licences pending the outcome of the main application.
In June 2009 an order was issued that all licences issued in terms of the previous act would remain valid pending the outcome of the main application, and the police regarded all old green licences to remain valid.
In February 2016 however a directive was issued that the interim order was only valid in respect of firearms that had never migrated to the new system and that once a white licence card had been issued for a firearm, the old green license was no longer valid.
The effect is that if a firearm owner had an old green licence, and renewed the licence to get a white licence, but allowed that new white licence to expire (for whatever reason) the owner is in illegal possession of such firearm.
This resulted in the only firearm owners presently being regarded as being in legal possession of a firearm by the Police, are those who have old green licenses in respect of a firearm that was never relicensed in terms of the new act and if a firearm has a valid white license.
If any white licence mentioned above had lapsed, you could participate in an amnesty which ran to 31 January 2024. It was the only manner of getting that firearm licenced on your name again.
In effect that meant that legal firearm owners were once again at the shortest end, since no criminals did hand in illegal firearms under any amnesty.
Members with lapsed white licences could apply for a new licence for such a firearm as well as for renewal of a lapsed competency certificate for that type of firearm while being protected from prosecution for being in possession of a firearm with a lapsed white licence, but only for the period up to 31 January 2024.
People with lapsed white licences are also no longer protected under the interim court order obtained by Gun Owners of South Africa (GOSA) on 27 July 2024 in the Gauteng High Court since the SAPS Appeal against that, was upheld by the Supreme Court of Appeals.
What now?
People with lapsed white licences, are thus now once again obliged by law to hand in firearms for destruction if the white licence for such a firearm has lapsed.
The legality of lapsed white licences for which there was a green licence is still interpreted by SAPS as per the National Commissioner’s directive of 3 February 2016, thus white licences which have lapsed will be interpreted as having expired, despite there being a green licence for that firearm, and that such firearms must be handed in with SAPS for destruction.https://firearms.co.za/maintenance/cleaning-your-firearm-safely/embed/#?secret=BKTWhrIwqJ
Until the prolongation of the legal validity of all green licences has been confirmed by a court and following the Constitutional Court’s 2024 order and the Supreme Court of Appeals’ order of 2024, a person who is in possession of a firearm of which the white licence has expired, had only two options:
The first is to surrender such firearm with SAPS for destruction, or secondly, to participate in the new amnesty to again get such firearm licenced under their name.
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.