Many business owners think all income from their company is theirs to use anytime, but a company is its own legal entity with separate tax rules. The company pays tax on profits, and salaries you draw are taxed personally. Money taken outside your salary is treated like a loan. To decide your salary, consider your personal expenses not covered by the business and include tax-friendly benefits. I’m here to help if you want to chat more about this!

Section 6A of the Income Tax Act offers a Medical Scheme Fees Tax Credit to the main member of a medical aid, reducing tax payable (not refundable). SARS allows R364 per month for the first two dependents and R246 for each additional one. Section 6B provides an extra rebate for medical expenses not covered by medical aid, based on age, disability, and income. Only prescribed, proven medical costs qualify. If you pay but aren’t the main member, you may still claim.

The Workmen’s Compensation Fund is a mandatory government fund in South Africa that protects employers and employees in the event of work-related injuries or diseases. In this article, we break down what the fund covers, how to register, and what employers need to know about annual submissions, claims, and compliance.