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Still need to submit NIL tax returns

Posted 13 January 2016 under Tax

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.

So what if you missed a return? Below is a summary of the consequences for not submitting a return:

Tax Area

Reason

Penalty

Interest

Persons/Companies

1st Provisional tax

Late submission

N$100 per day

None

 

Under-estimation penalty

Up to 100%

none

 

Late payment

10% per month

20%

2nd Provisional tax

Late submission

N$100 per day

none

 

Under-estimation penalty

Up to 100%

none

 

Late payment

10% per month

20%

Income tax Return

Late submission

None

20%

 

Late payment

10%

20%

 

Omission/incorrect statement

Up to 200%

20%

Companies

Employees Tax

Late submission

None

None

 

Late payment/ failure to withhold PAYE

10% per month

20%

Withholding Tax

Late payment

10%

20%

VAT & Import VAT

Late submission

N$100 per day

20%

 

Late payment

10%

20%


If you need to know when which return is due, click here, to see our blog on tax compliance.

In conclusion it is very important to submit your tax return even if it is a NIL return and to ensure you submit it on time!

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