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Latest Posts in Tax Blog

Latest Posts in Tax Blog

What is Employee Assist?

Posted 16 March 2017

have you heard of Employee Assist and do you want to know more about what it is, watch this video:


Introducting TaxTim

Posted 16 March 2017

If you want to know more about TaxTim and how it works, here's a short video for you


Employee Assist User Guide

Posted 16 March 2017

So you are signed up for Employee Assist - Congratulations!

If you are unsure what to do and you do not know how to get started using TaxTim, please see our user guide video:


How to use taxTim

Posted 16 March 2017

If you are unsure how to get started on TaxTim, check out our video tutorial on "How to use TaxTim".


2016 Deadline extended

Posted 30 June 2016

Verbal confirmation from the Minister of Finance was obtained this morning that extension for submission of all individual income tax returns (as well as payment of tax) have been granted to 31 July 2016.

The system at Inland Revenue will be amended to change the due date for returns and payments to 31 July 2016.

This should then prevent it from levying penalties and interest for any returns and payments done after 30 June 2016.

Where can you submit your 2016 Tax Return?

Posted 28 June 2016

Remember : individual income tax return are due 30 June 2016.

Inland Revenue confirmed that tax returns can ALSO be submitted at the some Nampost branches in Windhoek. These are additional facilities and returns can still be submitted at Inland Revenue offices as in the past. The branches are as follows:

  1. The Main Nampost branch situated at the corner of Independence Avenue & Daniel Munamuva Street
  2. Eros branch
  3. Olympia branch
  4. Klein Windhoek situated in Nelson Mandela Ave
  5. Pionierspark branch in the Baines Shopping Centre
  6. Bachbrecht branch
  7. Food Lovers Market situated in the Metro Shopping Centre in Kleine Kuppe
  8. Katutura Branch
  9. Khomasdal Branch situated in Borgward Street 
 
Remember  to submit your tax return before the due date, 30 June 2016, 17h00

Don't wait to the last minute  - click here to do your tax return NOW!

How to use TaxTim, as an employee signed up for Employee Assist

Posted 23 June 2016

Are you an employee of Employee Assist? 

Did your employer sign you up for TaxTim and you received a voucher to do your tax return.

Here is our Guide on How to use TaxTim also containing some frequently asked questions.

Have a look you might be suprised at how easy it is, or your problem could be addressed in the FAQ.

Why is my return printing odd, small or on different pages?

Posted 13 June 2016

Various taxpayers have asked TaxTim why when they finished their tax returns and print the return, it prints 'funny':
 - smaller than usual;
 - printing the information on a blank page instead of in the return;
 - printing blank pages

This could be the web browser you are using. If you are using "Internet Explorer", the print settings are smaller and sometimes preset print setting will obscure the tax return printing.

If you are using "Firefox", the print settings also cause problems....

Read more →

How to claim vehicle expenses in your tax return

Posted 3 June 2016

A taxpayer is only allowed to claim car expenses if you receive a vehicle travel allowance or a vehicle purchase allowance. This allowance is normally awarded to employees who use their personal cars for business travel.

How do I claim my vehicle expenses in my tax return?

  • Logbook

You will need to keep a logbook (A logbook is a book or number of sheets, in which the detail of a travel or trip is documented) for the tax year (1 March 2015 up to 29 February 2016), that indicates the total amount of kilometers travelled with your vehicle. This should be split between kilometers travelled for business purposes and kilometers travelled for private/personal purposes.

It is important to note that travelling from your home to your office or your workplace is not business travel.

  • Details of your vehicle

When completing your tax return online via TaxTim, please make sure that you have the following information ready:

  • Make and Model of the car (only if purchased)
  • Price of vehicle (only if purchased)
  • VAT charge on the price of the car

Normally the purchase agreement from when you bought the car is sufficient.

  • What expenses can be claimed

The following expenses that directly relate to the car used for business travel, may be claimed against the travel/car allowance:

  • If vehicle is purchased: An annual allowance at 33,3% of the total purchase price of the vehicle (for the year in which the vehicle was purchased and for the successive 2 years);
  • Please note you cannot claim the capital allowance on a vehicle already purchased a few years ago. If you do not claim the capital allowance in the year the vehicle was purchased, the claim is forfeited.
  • Also note if you claim capital allowances, this should be recouped/paid back when the car is sold or no longer used for business purposes. Want to know more about recoupment - click here
  • If vehicle is not purchased: Any rental or lease payments towards the vehicle being used;
  • Fuel, oil, repairs, tyres and maintenance of the vehicle;
  • Licenses and insurance of the vehicle;
  • Accident damage repaired;
  • Financing expenditure (such as interest paid on a vehicle purchase loan).
  • Insurance pay-outs and recoveries on accident damage

It is important to know that you will have to deduct any insurance payout and/or recoveries received (from your insurance company) for car accident damage, from your motor vehicle expenses for the tax year.

  • Claiming the motor vehicle expenses in your tax return

Step 1: Add all your motor vehicle (car) expenses together for the tax year;

Step 2: Deduct any insurance payouts received during the tax year for car accident damage from your motor vehicle expenditure;

Step 3: Write down your vehicle’s KM balance as at 29 February 2016. Also write down your vehicle’s KM balance as at 1 March 2015;

Step 4: Calculate the difference between the two balances in step 3 above, this will give you the total KMs travelled during the tax year;

Step 5: Deduct your private KMs travelled from this balance in step 4, to obtain your business KMs travelled for the tax year. Your private KMs travelled can be seen on your logbook;

Step 6*: Now calculated how much of the motor vehicle expenditure is attributable to business travel. This can be done by using the following formula:

Total motor vehicle expenses[1] multiplied by (Business KMs travelled[2] divided by Total KMs Travelled[3])

*The calculated amount in Step 6 will be the amount claimable as motor vehicle expenses in your tax return. This whole calculation will be disclosed in schedule 19 of your income tax return. The motor vehicle expenses claimable will then be included as a deduction under schedule 3 of your income tax return. It is important to remember that the expenditure being claimed, may NOT exceed the motor vehicle allowance received for the tax year.

Also note that you will have to retain proof of all the expenses claimed, and preferably submit this with your tax return, so Inland Revenue can verify the expenses you are claiming.

Remember if you use TaxTim to complete your tax return, then he will do all the calculations for you, no need to worry if it is correct.

 

[1] Step 1

[2] Step 5

[3] Step 4


Frequently asked questions for Employees using Employee Assist:

Posted 2 June 2016

  1. When I am done with the tax return, I receive a payment screen?

This means that you did not login through the voucher email. Please log out of TaxTim, go to the email and click on the “Click here to Start”. This should activate your voucher, removing the payment screen.

  1. I cannot remember my password?

No problem, you can always reset your password. On the login screen of the website, click on “Forgot your password”. You will see a screen where you should put in your email. A reset link will be emailed to you. Once you receive this link, click on it and you can reset your password. Easy!...

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TaxTim Returns and Assessment Queries

Posted 15 February 2016

Please note that TaxTim is an tax return completion service independent from Inland Revenue.

TaxTim has no influence on the assessments or refunds of individuals' tax returns.

You can contact Inland Revenue regarding your personal tax assessments. See Inland Revenue's website for their contact details.

When to submit which tax return

Posted 13 January 2016

Here we have a comprehensive table of when which tax return is due:

Income tax returns and tax payments due dates

 

 Individuals

Individuals (Employees)

30 June each year

1st Provisional

On/before 30 August (n/a to farmers)...



Read more →

Still need to submit NIL tax returns

Posted 13 January 2016

So, what if youe had no taxable income in a tax period, whether it be a provisional tax period, VAT period or even an annual tax period, are you still required to submit a tax return.

The answer is YES - you NEED to submit all tax returns as they become due with every period - otherwise you won't be compliant and penalties could be levied on your account.

Inland Revenue requires all returns to be completed and submitted with every period, even if no income was made and a NIL return should be submitted....

Read more →

Ring-fencing explained

Posted 3 September 2015

What is Ring-fencing?

Ring fencing is where a taxpayer may not offset losses from certain trades against income from other trades, or employment income in future years.
In Namibia ring-fencing only applies to natural persons with taxable income of more than N$200,000 per year (excluding any losses). This amount is usually the income from normal employment.

Where a person earns additional income from other trades, and losses are made from these other trades, you should consider whether the losses are deductible against your normal salaried income...

Read more →

What is recoupment?

Posted 25 August 2015

Recoupment is a term used by the Tax law where Inland Revenue recovers previous tax claims allowed to the taxpayer.  

Where any fixed asset is sold or no longer used by you for business purposes, and capital allowances were previously claimed on the asset, tax will arise on the sale known as recoupment. Please note that taking an asset out of use for business purposes, include donating an asset to be used for privat e purposes, like giving your work car to your wife/children to use....

Read more →

Estimating taxable income

Posted 25 August 2015

When completing and submitting provisional tax returns, you are required to estimate the taxable income for the first half of the year as well as for the full 12 month period.  As provisional tax returns are normally due before the tax year-end, it is often a difficult task to know what the total taxable income of the business/individual will be before the year closes off. Here are some tips to keep in mind when calculating your estimated taxable income.

  1. Remember the Income Tax Act requires at least 40% of taxable income to be declared with the submission of the first provisional tax return. This means that the tax thereon should be paid six months before year end.

80% of taxable income should be declared with the submission of the second provisional tax return. The tax thereon should be paid at year end.

Therefore in total you only have a variance of 20% in calculating your estimated taxable income. Inland Revenue can levy a 100% penalty on the under-estimated amount – so you have to make sure that you calculate your estimated taxable income carefully.

  1. The easiest method of calculating taxable income is to do a ‘gross-up’ of the income and expenditure for 5 months (for a first provisional return) or the past 11months (for a 2nd provisional return). A gross-up entails using the amount as is, divided by the months which it represents and then multiplying by 12, to arrive at an annual amount. For example; the income from sales for 11 months was N$120,000. The gross up would be N$130,909 (N$120,000/11 months x 12 months). Any once-off items that does not occur evenly over the year, can be excluded from this calculation and added/deducted separately in calculating the taxable income.

For e.g. a once off expense took place for major repairs on a building (N$30,000), then this amount can be excluded from the expenses which are grossed up.  The full amount is then deducted at the end

Income / 5 months x 12 = Y.

Expenses / 5 months x 12 = X

 Y less X less N$30,000 = Grossed up taxable income used for calculating tax payable

  1. Once a gross-up taxable income is calculated, this can be compared to the budgeted income for the year (if available) and whichever amount seems more reasonable can then be used.
  2. You should think of and include any significant transactions which may still happen for the remainder of the tax year, which may significantly impact the estimated taxable income. Such transactions may include:

- Disposal of fixed assets; (This will most likely result in a recoupment to be included in taxable income)

-  Fixed assets additions; (As you may be able to claim capital tax allowance on this, which will reduce your taxable income and result in less tax being payable)

- Other non-recurring transactions or once-off projects;

- Seasonal revenue trends. (If you know that the second half of the year has more sales as a result of the festive season, then you need to factor this into your estimates)

  1. Because of the 40/80% pre-requisite, it is advisable to rather not decrease your taxable income to 40% or 80% once you calculated an estimated annual taxable income, as this may cause under-estimations. Keeping a buffer, rather than saving on provisional taxes may save you from unnecessary penalties and interest on provisional taxes. For this reason we would advise that you pay at least 50% (as opposed to 40%) of the tax due on your first provisional tax calculation.

How to calculate remaining tax value for Motor Vehicle Recoupment

Posted 30 June 2015

The remaining tax value will be the wear and tear/depreciation which can still be claimed on the vehicle. Vehicles are written off over 3 years. 

If wear and tear/depreciation was claimed on the car in previous years, and one or two years of allowance can still be claimed, this amount will be the remaining tax value. Please note that Inland Revenue looks at the remaining tax value as if a full 1/3 allowance was claimed. In other words that no apportionment is made for the business vs private use of the vehicle.  Therefore, you will need to provide us with the tax value remaining that takes this into account.  ...

Read more →

What if you did not work for a full tax year, or if you were unemployed?

Posted 25 June 2015

  1. For individuals who were not employed for a full tax year, which is referred to as a broken tax year, a letter should be issued to Inland Revenue along with a police declaration whereby you declare that you were unemployed for a specific period.

    This will notify Inland Revenue that you did not receive income for a specific period. 

    Please feel to use the below wording for your letter - which you attach to your completed tax return. 

    The Receiver of Revenue...


Read more →

Individual Income Tax Tables

Posted 15 June 2015

All individuals are taxed according to a income sliding scale. All individuals, including trusts and estates, are taxed according to the below table, which is applicable for the tax years 28 February 2016 until further notice:

Taxable Income       

  N$

Rates of tax from years of assessment ending 28 February 2015/2016 (N$)

0 - 50 000

Not taxable

50 001 - 100 000

18% for each N$ above 50 001

100 001 - 300 000

9 000 + 25% for each N$ above 100 001

300 001 - 500 000

59 000 + 28% for each N$ above 300 001

500 001 - 799 999

115 000 + 30% for each N$ above 500 001

800 000 - 1 500 001

205 000 + 32% for each N$ above 800 000

Above 1 500 001

429 000 + 37% for each N$ above 1 500 001


Choosing a Tax Return - Brown, Blue or Yellow?

Posted 11 June 2015

If you are a registered taxpayer in Namibia, you ought to receive a blank tax return in the mail at some time during the year.

Have you ever noticed that there are different types of tax returns, when looking at the colours. 

For individuals there are 3 different type of tax returns, which are Brown, Blue and Yellow.

So what exactly is the difference between the 3 types of tax returns and can you submit any coloured return.

STOP! No, you cannot just complete any colour return and submit it, as it may have consequences where your taxpayer status may change with Inland Revenue....

Read more →

What will the tax return look like using TaxTim?

Posted 11 June 2015

Taxpayers may be sceptical of what the tax return will look like using TaxTim.
After-all you can only see your completed tax return once payment is made.

Here is a sample view of a tax return completed by TaxTim.

Depending on the type of return you choose and the information completed, yours may look a little different. ...

Read more →

Does TaxTim cater for Provisional taxpayers and Farmers?

Posted 11 June 2015

For the 2015 tax year, PwC's TaxTim caters for all type of individual taxpayers, as well as Trusts (Business or Family).

So all normal salaried individuals, pensioners, farmers and provisional taxpayers can use TaxTim to complete their annual tax returns.

The tax returns for salaried individuals and pensioners are due on 30 June.

Tax returns for farmers and Provisional taxpayers will only be due for submission at the end of September.

Provisional tax returns will be ready for use later in the year.


How to make changes to the Tax Return once finished?

Posted 11 June 2015

On the page where you can see your completed tax return, look right above the return is a medium sized orange arrow button, pointing to the left, under the arrow it states, "change an answer".

Click on the arrow, this will take you back to the questions/conversation with Tim.

You can scroll down the page and make at any time. Just click a different option, or enter a new answer to any question. Your tax return will update with the new information automatically.

If you made any changes – remember to reprint the return before submitting.


What if TaxTim does not calculate taxes accurately?

Posted 9 June 2015

Some of our users have asked what will happen if TaxTim does not calculate taxes accurately.

It is a good question, so let us explain:
  • If the use of TaxTim results in an error occurring on a tax return, the taxpayer should contact us and we will take all steps possible to rectify the error.
  • PwC did an enormous amount of testing with over 100 tax returns to ensure accuracy before launching TaxTim in Namibia.
  • However, bear in mind, that the product is still only a tax return completion tool which gives output based on what a taxpayer puts into it...


Read more →

How to complete a provisional tax return form

Posted 22 April 2015

First off, just note that TaxTim can help to complete your provisional tax returns online. Do your provisional returns now by following this link: Do a provisional return now!

You should receive your provisional tax return by post well in advance of the required filing dates (which is in February and August each year).  In the event that you have not received a form via post, you can collect forms from the Customer Care counters at the Inland Revenue offices. Click here to view the location of the various Inland Revenue offices in Namibia....

Read more →
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