Some tax updates

Thu, 29 Oct 2009 15:24:45 +0100

If your employees work for you outside the country for more than 183 days in a year, during which time they stay out of the country for a period of more than 60 days, all the income they receive will be tax exempt. As an employer who would withhold employees’ tax and they would claim compensation and receive a refund on assessment.

The foreign investment limit is currently R2 million.

The first 18000 of any kilometres is deemed to be private if you do not keep accurate logbooks.

You only need to register for SDL if your annual payroll exceeds R500 000.

For VAT if your annual turnover is over R1 million then you need to register. You may however register voluntarily.

Taxpayers in Namibia

Tue, 15 Sep 2009 10:30:23 +0100

In its quest to collect taxes from Namibian sources, the Inland Revenue Directorate encourage taxpayers to comply with the Income Tax Act No 24 of 1981 (“the Act) in terms of payment, filing and communication.

Section 5(1)(a) of the Act, provides that income tax shall be paid annually in respect of the taxable income received by or accrued to or in favour of any person. The self assessment system requires taxpayers to voluntarily compute their income, declare tax and pay it over to Inland Revenue Directorate. A taxpayer is required to disclose all income from sources with Namibia.

When income for a particular year of assessment is under reported Inland Revenue Directorate imposes fines up to twice the tax chargeable. Furthermore there are penalties for failing to pay tax on time.

Section 56(1A) of the Act provides that the due date for the furnishing of a return and payments of tax for individuals is the 30 June following the end of year of assessment. Whereas the due date for companies and provisional taxpayers is the last day of the 7th month after the end of the year of assessment.

Section 56(3) of the Act provides that if a taxpayer cannot meet any deadline set by the Inland Revenue Directorate he should request an extension in writing. The practice is however that no extension shall be granted if there is any outstanding tax balance or return.

Section 56(7) of the Act provides that a taxpayer who is required to furnish a return of income should obtain such a return of income form from Inland Revenue Directorate if he did not receive one by post mail.

Practice Note 1 -2000 where the due date for any payment of submission of any return in terms of the act falls on a Saturday, Sunday or Public Holiday the due date shall be the first following working day.

In terms of communication, a taxpayer is required to notify the Directorate of Inland Revenue about relevant changes. Changes include but not limited to changes in postal address, physical address and trading activities.

A taxpayer is further required to respond to correspondences issued by the Directorate of Inland Revenue which might entail the resubmission of documents and examination of records. Inland Revenue Directorate requires a taxpayer to maintain all relevant records for the purpose of examination in obtaining full information in respect of any income for any year of assessment.

Tax News

Thu, 27 Aug 2009 07:57:34 +0100

The page will include any tax updates and information on tax.

tax-news

Some tax updates

Taxpayers in Namibia

Tax News