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Income Tax Act, 1962 (Act No. 58 of 1962)


Seventh Schedule : Benefits or Advantages Derived by reason of Employment or the Holding of any Office

12C. Benefits in respect of insurance policies


(1) The cash equivalent of the value of a taxable benefit deemed to have been granted as contemplated in paragraph 2(k) is the amount of any expenditure incurred by an employer during a year of assessment in respect of any premiums payable under a policy of insurance directly or indirectly for the benefit of an employee or his or her spouse, child, dependant or nominee.


(2) [Paragraph 12C(2) of the Seventh Schedule deleted by section 124(1) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013) - effective 1 March 2015]


(3) Where an appropriate portion of any expenditure contemplated in subparagraph (1) cannot be attributed to the employee for whose benefit the premium is paid, the amount of that expenditure in relation to that employee is deemed, for the purposes of subparagraph (1), to be an amount equal to the total expenditure incurred by the employer during that year of assessment for the benefit of all employees divided by the number of employees in respect of whom the expenditure is incurred.


[Paragraph 12C of the Seventh Schedule inserted by section 106(1) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]