Uisng Foreign Driving Licences in South Africa – Must Know

A driving licence issued in any country other than South Africa (RSA), is valid to drive with in the RSA if:

  • The foreign driving licence was issued on a date on which the holder thereof has not been permanently or ordinarily resident in the RSA. A person is permanently resident in the RSA if he/she is a RSA citizen, or disposes over the right to permanently reside in the RSA based on an official document issued by the Department of Home Affairs, and he/she resides in the RSA. A person is ordinarily resident in the RSA if he/she is in the RSA on an extended visit of more than three months on a contract of employment (not just visiting). The permanent residence requirement does not apply to a holder of a diplomatic permit or a treaty permit; and
  • The licence is in English OR a translation of the licence in English is attached to the licence OR a certificate of authenticity or validity in English which was issued by a competent authority (e.g. the Embassy or Consulate) of the country concerned, is attached to the licence. The legislation does not prescribe who should attach a translation or a certificate of authenticity or validity to a driving licence, how it should be attached or when it should have been attached. The legislation also does not prescribe that the translation should state the capacity of vehicle the licence authorises. The code of the licence does not necessarily relate to a South African licence code, and therefore should describe the capacity of vehicle the licence authorise; and
  • The licence contains or has attached thereto the photograph and signature of the holder thereof. The legislation does not prescribe who should attach a photograph and signature to a driving licence, how it should be attached or when it should have been attached. The rule of thumb here should be that if a licence does not have the holders photograph or signature contained on it, some other formal document like a passport that contain the persons photograph or signature should accompany the licence; and
  • The licence is valid in the country or territory of issue.

A foreign driving licence remains valid until:

  • In the case where the holder of such foreign licence is an RSA citizen or a person that already have permanent residence, the person returns to the Republic to resume permanent residence and has been permanently resident for a continuous period of 1 year in the RSA; or
  • In the case of another person, the person obtains permission in terms of any law for permanent residence in the Republic and has taken up permanent residence and has been permanently resident for a continuous period of 1 year in the RSA. The question is raised whether contract workers and visitors can be regarded as permanently resident in the RSA. If contract workers and visitors do not comply with the aforementioned conditions, regardless of the length of their stay in the RSA, they are not permanently resident in the RSA. The permanent residence requirement does not apply to a holder of a diplomatic permit or a treaty permit.

The holder of a foreign driving licence (excluding a provisional (or learners) licence) issued in a prescribed territory (the Southern African Development Community member states, including Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia, Zimbabwe and Tanzania) as referred to above may drive:

  • A motor vehicle of the appropriate class for own use; and
  • A motor vehicle for which a professional driving permit is required in the RSA if the foreign licence allows the person concerned to drive such a motor vehicle without any other authorisation in his/her territory. Should a further authorisation be required to drive such a motor vehicle in his/her country then the person should also have such an authorisation with him/her when driving such a vehicle. Any document issued by a competent authority in any prescribed territory and serving in that territory a purpose similar to that of a professional driving permit shall, subject to the conditions thereof and to such conditions as may be prescribed, be deemed to be a professional driving permit for the purposes of the Act.

A professional driving permit is required for the driving of:

  • A goods vehicle, the gross vehicle mass of which exceeds 3 500 kilograms;
  • A breakdown vehicle;
  • A bus;
  • A minibus

(i) the gross vehicle mass of which exceeds 3 500 kilograms; or

(ii) which is designed or adapted for the conveyance of 12 or more persons, including the driver;

  • a motor vehicle used for the conveyance of persons for reward or is operated in terms of a operating licence issued in accordance with the NLTTA;
  • a motor vehicle used for the conveyance of dangerous goods; and
  • a motor vehicle conveying 12 or more persons including the driver.

The holder of a foreign driving licence (excluding a provisional (or learners) licence) issued in any other country (excluding a prescribed territory) as referred to above may drive a motor vehicle of the appropriate class for own use. The person concerned may not drive a motor vehicle for which a professional driving permit is required.


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.