FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


What are the implications of self funding benefits such as life cover, disability, med aid etc?

Posted 28 January 2015

What are the tax implications of self funding benefits such as group life cover, disability cover, medical aid and retirement funding compared to when these benefits are funded in full. Partially by a company. Would my earnings or tax benefits be less or more?

TaxTim TaxTim says:
29 January 2015 at 22:12

Either way you will receive a tax benefit on the retirement funding, the other covers will not carry any benefit going forward. Medical will still provide a tax credit against the taxes payable regardless of who funds it.

If your employer funds these benefits then you will be taxed as if you are receiving a fringe benefit, but your salary will remain the same. Any tax benefit will be felt each month as your PAYE may be lower. However if you take any of these policies out yourself personally then the benefit to you will only be felt once you have submitted your tax return.

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.




Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.