Is there a grace period for expired drivers license South Africa?

Driving licence ‘grace period’ rules you should know about

Motorists are expected to flock to testing centres around the country this week as the country’s driving licence grace period comes to an end.

Transport minister Fikile Mbalula has confirmed that the government will not issue a further extension and warned that affected motorists have until Thursday (5 May) to renew their expired driving licence cards.

The deadline applies to all learner’s licences, driving licence cards, temporary driving licences and professional driving permits that expired during the period that commenced from 26 March 2020 up to and including 31 August 2021.

Mbalula said that his department has a plan ahead of the expected influx of motorists at driving licence centres this week. This includes extending the daily operating hours of the driving licence centres by two hours during the week and opening on weekends, both Saturday and Sundays, until 31 May 2022, he said.

The rules you should know 

Mbalula has also confirmed that traffic authorities will be stepping up law enforcement after the driving licence renewal grace period lapses on 5 May.

He warned that motorists who have not yet applied for a new licence would be penalised. The deadline also won’t be extended further, he said. However, he also promised that officers would help motorists with ‘genuine challenges’ who could not renew.

The Road Traffic Management Corporation said that motorists should be aware of important rules around expired driving licence cards:

  • Motorists who apply for renewal of their driving licence cards before the expiry date are permitted to use the expired card for a period of three months, provided that they have in their possession the expired card and the receipt in the vehicle at all times. This provision is contained in the country’s National Road Traffic Regulations.
  • Motorists who apply for renewal of their driving licence cards after the expiry date will be compelled to take a temporary driver’s licence because they do not fall within the grace period.

These rules apply generally – ie, to all driving licence cards – but are especially important for those whose licences expired between 26 March 2020 and 31 August 2021, as 5 May is now considered the expiry date for these cards.

“In terms of the regulations of the Road Traffic Act, you are not going to be penalised. We are going to allow you to renew, and what you need to prove to the law enforcer is a receipt that you’ve renewed, as well as your old licence,” said RTMC chief executive Makhosini Msibi.

“Anybody that comes beyond 5 May will be compelled to renew, but over and above, you are therefore compelled to take a temporary driver’s licence because you don’t fall within the grace period.”


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.