How To Calculate Housing Allowance In Namibia

How To Calculate Housing Allowance In Namibia

What is Housing Allowance?

An amount paid by the company, either to the expatriate or direct to the property landlord, to enable the expatriate to rent or lease housing in the host country. 

How To Calculate Housing Allowance In Namibia

To determine your housing allowance, you should calculate both your anticipated expenses and the fair market rental value of your home. Then request the lesser amount. Some pastors regularly request the fair market rental value of their home even when it is higher than their anticipated expenses.

Frequently Asked Questions

Is housing allowance taxable in Namibia?

Housing allowance is taxable, however 1/3 is exempt if the employer has an approved housing scheme; The use of a company car is taxable at 1.5% if all costs are paid by the employer and 1.4% if you as an employee pays the fuel cost.

How is PAYE calculated in Namibia?

What is the formula to calculate PAYE in Namibia? Gross Income = Basic salary + allowances + commissions. Step 2. Taxable Income = Gross Income – all deductions/exemptions allowed by law e.g. NSSF, private pension.

Is housing allowance a fringe benefit in Namibia?

Some employers offer free or discounted housing to their employees. The Internal Revenue Service imposes tax on employer-provided housing and lodging. This is because employer-provided housing is considered a fringe benefit, and its value is usually taxable.

Is rental income taxable in Namibia?

premises, land, building, house, backyard flat, and office space. Income received from any agreement for the usage of the property is taxable, provided that such a property is situated in Namibia. Money paid to terminate the rental agreement is also taxable and should be included in the income for the year.

What are the current VAT rates in Namibia?

The standard rate of VAT in Namibia is 15%. Certain goods and services are zero-rated, such as direct exports of goods, international transport services, sales of businesses as going concerns, certain services rendered to nonresident persons and sales of some basic food items.

Who qualifies housing allowance in Namibia?

In terms of the PSCBC Resolution 7 of 2015, Employees who are home-owners and have submitted proof of title deeds/Permission to occupy certificate including the affidavit that the immediate family occupy the house, are eligible to receive the housing allowance of R1200.

How do I calculate my fringe benefits in Namibia?

To calculate an employee’s fringe benefit rate, add up the cost of an employee’s fringe benefits for the year (including payroll taxes paid) and divide it by the employee’s annual wages or salary. Then, multiply the total by 100 to get the fringe benefit rate percentage.

What is included in a housing allowance?

Some of these items include: down payment on a home, mortgage payments (including both interest and principal), home equity loan payments (assuming the loan proceeds are used for housing-related expenses), real estate taxes, homeowners’ association dues, property insurance, utilities, furnishings and appliances 

Is government pension taxable in Namibia?

Pension and RA funds – The total lump sum is tax-free, but the annuities /pensions paid to dependants are taxable at the marginal rate. The difference being paid as annuities, will be taxable.

Does Namibia tax foreign income?

Namibia has a source based system of taxation with the result that Namibian residents are, save for some exceptions, only taxed on their Namibian income while foreign residents are taxed only on the income generated within Namibia.

Can housing allowance be more than salary in Namibia?

A minister who receives a housing allowance may exclude the allowance from gross income to the extent it is used to pay expenses in providing a home. The amount excluded cannot be more than the reasonable compensation for the minister’s services.

What expenses can be included in clergy housing allowance?

A minister who receives a housing allowance may exclude the allowance from gross income to the extent it’s used to pay expenses in providing a home. Generally, those expenses include rent, mortgage interest, utilities, and other expenses directly relating to providing a home.

What is a housing allowance for a pastor in Namibia?

A parsonage allowance is a sum of money awarded by the same governing board of a house of worship to its minister to offset housing expenses. For tax purposes, this allowance is exempted from the recipient’s gross income. 1 A parsonage allowance may also be called a rental allowance or housing allowance.

Does housing allowance count as income for social security in Namibia?

Housing allowances are considered as part of a minister’s compensation for services, and are thus counted as earned income. The resulting net earnings are subject to Social Security taxes, and can be used when determining a minister’s Social Security retirement or disability benefit rate.

What is the maximum housing allowance for pastors in Namibia?

The housing allowance cannot exceed the reasonable compensation for the minister’s services, but can be 100% of the minister’s compensation, especially if the minister is part-time, has a very small congregation, or has another source of income [Warren vs. Commissioner].

How is clergy housing allowance taxed in Namibia?

If you are employed as a member of the clergy, a religious order or as a regular minister of a religious denomination, you must report your employment income like any other taxpayer. If you receive a housing allowance, it is considered to be a taxable benefit and will be shown on your T4 slip in Box 30.

How do I apply for housing allowance in Namibia?

  1. The amount officially designated (in advance of payment) as a housing allowance;
  2. The amount actually used to provide or rent a home; or.
  3. The fair market rental value of the home (including furnishings, utilities, garage, etc.)

Can housing allowance be adjusted during the year?

The truth is, you can change or request a housing allowance at any time during the year

Do chaplains get housing allowance in Namibia?

Chaplains in government-owned hospitals are eligible for the housing allowance.

Is local housing allowance the same as housing benefit?

Local Housing Allowance is used to calculate the maximum amount people renting from a private landlord can claim in Housing Benefit or Universal Credit. If the rent you pay is less than your Local Housing Allowance then this can affect the calculation. For more information see rent lower than Local Housing Allowance.