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.
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:
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....
In some situations you may be required to make an additional tax payment with the submission of the annual income tax return (for example where the employer has not deducted enough employee taxes for the period, or where you are conducting business in your own name)
With the various payment methods available, the payment process is fairly simple.
The payment options available are:
Electronic fund transfer
Below we will explain how to make a tax payment using the different options....
You can either apply as a provisional taxpayer when you first register for a tax number with Inland Revenue, or make the change directly at the offices of Inland Revenue. To apply you will need to write a letter to Inland Revenue stating ”I will be earning other income during the tax year ending 28 February 20xx that is not related to my salary income. I hereby kindly request your office to register me as a provisional taxpayer."
Do you earn more than N$5,000 extra income (i.e. income less allowable expenses) other than your normal salary/wage income in a tax year? (For e.g. Rental income, Commission from a side line job, farming etc)
Are you a Director of a Namibian Private Company or a member of a Close Corporation?
Are you a partner in a Partnership, from which you earn more than N$5,000 partn...