Friday 10 July 2020

Namibia: tax incentive program

Tax returns, tax incentive program

The Ministry of Finance in Windhoek recently issued a media release regarding the extension of filing individual income tax returns and the current tax incentive program.
  
Due to the effect of Covid-19 in Namibia and requests received from the public, the ministry of finance has extended the deadline for submitting individual income tax returns, as well as, an extension on the current incentive program which would have initially lapsed on 30 June 2020.

The ministry of finance indicated that the extensions will allow all employers to submit their employee tax excel sheets on the Integrated Tax Administration System (ITAS), as well as, promote the registration and usage of online filing by taxpayers.

Extension on filing of individual income tax returns

The due date for submission of individual income tax returns has been extended from the 30th of June to the 30th of September 2020. The extension only applies for the filing/submission of individual income tax returns and not for the payment of outstanding tax (which is still due on the 30th of June 2020).

Important considerations for employers

The ministry of finance emphasized the importance of employers to submit their monthly detailed employee tax returns for the period March 2019 up to February 2020 online through ITAS, including the uploading of the designated Microsoft excel template or capturing employees’ detailed information online.

Furthermore, employers should ensure that PAYE5 certificates are an exact reflection of their monthly employee tax return submissions for the tax year.

The ministry of finance further advised that employers should not issue PAYE5 certificates to employees, if such employers did not file their monthly employee tax returns online (as per ITAS requirements).

Extension of current tax incentive program

The tax incentive program regarding the use of ITAS, in the form of waiving penalties charged on tax accounts will also be extended to the 30th of September 2020.

In order to qualify for this incentive program, a taxpayer must meet the following requirements:

• Register on the ITAS portal as an e-filer; and

• Update through online submission all tax accounts, for all tax types, in respect of tax returns that might be outstanding.

Should the above requirements be met, automatic waiving of penalties will be done on any of the tax accounts. 

Taxpayers are therefore not required to complete an application form for penalties to be waived. The ministry of finance encourages taxpayers to make use of this tax incentive program before the due date (30 September 2020).

In conclusion

Should taxpayers face challenges in using ITAS or uploading the designated Microsoft excel spreadsheet for employee tax returns, the ITAS helpdesk can be contacted via telephone at +264 61 289 4000 or via email at itas@mof.gov.na

The Ministry of Finance encouraged taxpayers to register for online filing of tax returns in ensuring faster assessments and avoiding risk such as the spread of Covid-19 where physical filing of tax returns take place.
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