Admin Boss Tax Knowledge Hub

Insurance Tax Deduction Guide

Updated: June 2026 5 min read
Quick Overview: Business insurance premiums are generally deductible. Personal insurance is not deductible except in specific circumstances.
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Andre van Niekerk

Registered Tax Practitioner, Admin Boss

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Table of Contents
  1. Quick Answer
  2. Deductible Insurance
  3. Non-Deductible Insurance
  4. Key Person Insurance
  5. Frequently Asked Questions
Quick Answer

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

Deductible Insurance

Business insurance including property, liability, professional indemnity, and vehicle insurance used for business are deductible.

Non-Deductible Insurance

Personal life insurance, medical aid premiums, and personal vehicle insurance are not deductible. These are considered personal expenses.

Key Person Insurance

Key person insurance premiums are generally not deductible, but the proceeds may be tax-free in the hands of the business under certain conditions.

Frequently Asked Questions

How do I claim this deduction on my tax return?

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

What documents do I need?

Keep receipts, invoices, tax certificates, logbooks, and any other proof of the expense. SARS may request these during verification.

Can Admin Boss help with my deductions?

Yes. Admin Boss is a registered tax practice that can review your deductions, ensure compliance, and maximise your tax savings. Visit adminboss.co.za/need-more-info/.

Need Help With Your Tax?

Admin Boss is a registered tax practice with over 20 years of experience helping South African individuals and businesses navigate SARS.