Taxpayers urged to rectify outstanding returns and payments

In a press statement dated 4 April, 2013, the Ministry of Finance urged all taxpayers with outstanding returns and balances on any of their tax accounts to submit their returns or settle the outstanding balances.

Affected taxpayers are given 90 days from 1 April 2013 to comply with the request before the following measures will be taken against those in default:

  • Permanent closure of import VAT accounts;
  • Prevention of participation in public tenders;
  • Legal action, including sale of assets in execution to recover tax debts;
  • Denial of penalty waiver requests; and/or
  • No processing of tax refund claims.

Proposed Skills Levy

The proposed imposition of a skills levy with effect from 1 September 2013, was announced in the Government Gazette of 11 April 2013.

All companies with an annual payroll in excess of N$350 000 will be liable for the payment of a 1.5% VET (skill) levy, payable to the Namibia Training Authority (NTA) by the 20th of each month.

Affected employers may make representations regarding any concerns or objections to the Ministry of Education until 11 May 2013.

Tax Amendments approved

The National Assembly has recently approved the following proposed corporate tax rate changes, effective for years of assessment commencing on or after 1 January 2013:

  • Non-mining companies: 33%
  • Long-term insurance companies: 13.2%
  • Withholding taxes on royalties: 9.9%.

Once the Amendment Acts are published per the Government Gazette, the Acts will be officially promulgated.

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