How To Calculate Paye In Namibia

How To Calculate Paye In Namibia

What is PAYE?

A pay-as-you-earn tax, or pay-as-you-go in Australia, Ireland, New Zealand, and the United Kingdom, is a withholding of taxes on income payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as determined on tax returns

How 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.

Frequently Asked Questions

Does everyone pay PAYE in Namibia?

If you are an employee, you normally pay tax through PAYE. Every time your salary is paid, your employer deducts Income Tax (IT), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) and pays the amount deducted to Revenue.

Do you get PAYE tax back in Namibia?

If you have paid too much tax through your employment or pension and the end of the tax year in which you overpaid tax has already passed (and you have not received a P800 or need your refund urgently and can’t wait for your P800), you can make a claim for a refund. It is probably easiest to do this by writing to ITAS

Who is exempt from PAYE in Namibia?

Overview. You may not have to pay Income Tax (IT) if you or your spouse or civil partner are aged 65 or over. This applies if you are single, married, in a civil partnership or widowed. Your total income must be less than, or equal to, the exemption limits.

How much must you earn to pay PAYE in Namibia?

If you are earning a salary of R75 750 (2017: R75 000) per year or R6 312.50 (2017: R6 250) per month before deductions, you should be paying PAYE monthly on the salary you receive. If you earn less than R6 312.50 (2017: R6 250) per month, you are not required to PAYE on a monthly basis

Why is PAYE deducted?

AYE aims to collect, over the course of a tax year, approximately the right amount of tax from your earnings. This is done by the issue of one, or sometimes a series of tax codes, which are used by your employer to calculate the tax to be deducted from your earnings.

Why is my PAYE so high in Namibia?

You may have overpaid tax if you become unemployed or are out of work sick. Find out more about claiming a tax refund if you are unemployed or out of work sick. You may also have overpaid tax if your tax credits are incorrect or you haven’t claimed tax relief for certain expenses.

Is PAYE compulsory in Namibia?

Introduction to PAYE. As an employer, you normally have to operate PAYE as part of your payroll. You do not need to register for PAYE if none of your employees are paid N$12000 or more a week, get expenses and benefits, have another job or get a pension. However, you must keep payroll records.

Can I pay PAYE yearly in Namibia?

If you pay your employees only once a year, and all in the same tax month, you can register with HMRC as an ‘annual scheme’. This means you send reports and make payments to HMRC annually. To register, contact the employer helpline and tell them which month you pay your employees

Can PAYE change each month in Namibia?

If the amount that the payroll changes each month is relatively small, to within a pound or two, it is because the tax tables HMRC uses to calculate income tax don’t use odd pennies. So monthly deductions do vary slightly. It is not unusual for employees to have incorrect tax codes.

What does PAYE mean on payslip in Namibia?

If you are employed, you pay it through a system called Pay As You Earn (PAYE) – a term I am sure you have heard banded around before. Well, PAYE is basically used to collect your Income Tax and National Insurance contributions. Your employer deducts these contributions from your wages and pension.

Are workers subject to PAYE?

If you are an employee, your employer is required by law to operate Pay As You Earn (PAYE) tax and Class 1 National Insurance contributions on your wages and pay it to HM Revenue & Customs (HMRC) on your behalf

What income is tax free in Namibia?

Rebate of up to Rs 12,500 is available under section 87A under both tax regimes. Thus, no income tax is payable for total taxable income up to Rs 5 lakh in both regimes.

What is the minimum salary to pay income tax in Namibia?

As per interim budget 2019, Individual taxpayers having taxable annual income up to Rs. 5 lakh will get full tax rebate u/s 87A and therefore will not be required to pay any income tax. However Income tax Slabs and Rates will remain unchanged for the FY2019-20.

Who must pay tax in Namibia?

A salary earning individual who earns an income of more than N$ 40 000 per annum and non-salary income in excess of N$ 5 000 per month is liable to pay tax and should register for income tax.

Are donations tax deductible in Namibia?

A specific deduction for donations is allowed, provided that it is made to a registered welfare organisation or an approved educational institution. However, this deduction may not create or increase a tax loss.