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How to complete a provisional tax return form

Posted 22 April 2015 under Tax

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.

STEP 1: Complete your personal details

Fill in your offices of registration (for e.g. Windhoek, Keetmanshoop, Walvis Bay)
In the block right next to it, fill in your personal tax number (you can get this either from your PAYE 5 certificate or from your prior year tax return).
Next, fill in your name under 1.
If you use a different trade name, this can be filled in under 2.  Your name may be "Nelson Hugo" for example, but you may be trading as "ABC Consulting".
Fill in your ID Number under 3 and your postal address under 4.
All details should be filled in on the right hand side of the page in the blocks provided, in CAPITAL letters.




STEP 2: Complete the back of the return now

If it's your 1st provisional payment (Period 1)

On your 1st provisional calculation (i.e. due in August every year) you will need to estimate your taxable income for the first six months.
This estimate is included in the first set of blocks.
You are then required to calculate the tax on this amount by using the tax rates applicable to you.  For a quick calculation of the taxes due, try our online tax calculator.
You enter the tax amount payable just below your estimated taxable income, in block 6.
This amount is then copied into block 7.
Ignore the "Provisional tax" block.
Enter any employees tax paid for the year. This information can be obtained from your employer / HR department - ask them for a year to date amount that has been deducted for PAYE from your salary. Copy this amount into "Total taxes paid this tax year".
The amount for employees tax is deducted from the estimated tax payable (as found in block 7) to leave the amount for tax payable. This is the amount you need to pay with the submission of your provisional tax return.

If it's your 2nd provisional payment (Period 2)

On your 2nd provisional calculation (i.e. due in February every year) you will need to make an estimate of your taxable income for the full year.
This estimate is included in the first set of blocks.
You are then required to calculate the tax on this amount by using the tax rates applicable to you.  For a quick calculation of the taxes due, try our online tax calculator.
You enter the tax amount payable just below your estimated taxable income.
This amount is then copied into block 7.
The next step is to enter your previous provisional tax payment (i.e. the value of your 1st provisional tax payment made in August).
Enter any employees tax paid for the year. This information can be obtained from your employer / HR department - ask them for a year to date amount that has been deducted for PAYE from your salary.
The total of your employees tax and your 1st provisional tax payment is then added together and entered into "Total taxes paid this tax year".
This total is deducted from the estimated tax payable (as found in block 7) to leave the amount for tax payable. This is the amount you need to pay with the submission of your provisional tax return.




STEP 3: Complete the rest of the information on the front of the return


The amount that was calculated as the tax payable on the back of your return is the amount that you enter into the blocks "Amount Payable" on the front of your return.

Where the tax period is not showing you can use the following (example for 2016 tax year - Feb 2015 to March 2016):

1st provisional payment (Period 1)

Tax period Year Period
2016 2016 01

2nd provisional payment (Period 2)

Tax period Year Period
2016 2016 02

The block "Tax payable on or before" should be completed as follows:

(This example shows the 2016 tax year - Feb 2015 to March 2016)

1st provisional payment (Period 1)

Tax period Tax Payable on or before
2016 - 01 31/08/2015

2nd provisional payment (Period 2)

Tax period Tax Payable on or before
2016 - 02 28/02/2016

It is important to complete all the information required in all the blocks provided.


Understanding the jargon of the Provisional Tax form

Period
 - ensure that the correct period is checked - first period / 01 means 31 August 2015 (for the 2016 tax year).
Estimated taxable income - all your income minus the business-related expenses that you paid in earning that income. Also subtract any pension fund, retirement annuity fund contributions, donation deductions and any exempt income.

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