How To Register For Income Tax In Namibia

What is Income Tax?

An income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income. Taxation rates may vary by type or characteristics of the taxpayer and the type of income

How To Register For Income Tax In Namibia

Steps to follow to register for tax in Namibia

1. Open our website: //www.itas.mof.na
2. Click on the “E-Service” link on the top -right corner. A log-in page will open.
3. Click on the “click here to Register” link to open the registration page
4. Once the registration page opens, complete all the required fields with the “*” asterisk and click on the “submit button”.
5. A verification email will be sent to your email address to activate your User Account.
6. Click on the “Activation Link” to activate your account.
7. After you click on the activation link, your user account will be activated. You will then be directed to the sign in page.
8. Click on the “Log In” link to log in to the portal account.
9. Enter username and password (1), and click on “Log In” button (2).
10. When you log-in, the Welcome page opens up, which outlines the terms and conditions to be adhered to. Read the terms and conditions and tick the agree box “I accept Terms and Condition” to proceed.
11. Click on Link your Taxpayer Account Here.
12. Complete the information on the “Taxpayer Bind” page. Complete the mandatory fields and click submit Button.
13. A success message will be displayed that “You have successfully Linked your Taxpayer Number”.
14. IF you are not yet registered as a taxpayer, Click on the link “Register as a New Taxpayer”.
15. A confirmation box will pop up to confirm if you are sure you want to register as a new Taxpayer? Click Yes.
16. A registration/application form will open. Complete all the required fields on the taxpayer registration page, and click “submit” plus upload the attachment (s) required.
17. Upon clicking “submit button”, an acknowledgement receipt of taxpayer registration will be sent to your email.
18. Once the registration process is completed, you will receive a Registration Notification via your email.

You can download the form below to register as a tax payer if you are not able to register online
Download Application form for Registration as Income Taxpayer (pdf)

Frequently Asked Questions (FAQ’s)

How do taxes work in Namibia?

Namibia has a system of self-assessment, which must include a computation of the taxpayer’s taxable income and tax payable, and the payment of tax due on the income so computed. The income tax return for salaried individuals is due on 30 June and for farmers and business individuals on 30 September.

What is the VAT rate in Namibia 2021?

VAT is levied at the standard rate of 15% on the supply of most goods and services and on the importation of goods. It is mandatory for a person who carries on a business with an annual taxable turnover above N$500,000 to apply for VAT registration.

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.

What is Namibia withholding tax?

A WHT of 10%, calculated on the gross amount of interest, is payable on interest accruing to any person, other than a Namibian company, from a registered Namibian banking institution or unit trust scheme. The tax withheld is a final tax, and the financial institution is responsible to withhold the tax.

Is income tax paid monthly or yearly?

Income tax is applicable to be paid by individuals, corporates, businesses, and all other establishments that generate income. Even though income tax is paid every month from the monthly earnings, it is calculated on an annual basis. The amount of income tax an individual has to pay depends on a number of factors.

Do you pay tax on dividends in Namibia?

Dividends – Dividends paid to nonresidents and certain foreign held residents are subject to NRST at 10%, unless the rate is reduced under an applicable tax treaty. Interest – Both residents and nonresidents are taxable on Namibian interest income (subject to certain exemptions and tax treaty relief).

Is tax calculated on gross or net income?

In this case, income tax is based on the gross salary of the employee and is deducted as a source by the employer. Moreover, the basic salary of an employee should be at least 50-60% of his/her gross salary. Let’s assume Mr. Dhruv falls between the salary range of Rs 2,00,001-Rs 5,00,000 and comes under 10% tax-slab.

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.

Is there capital gains tax in Namibia?

There is no capital gains tax in Namibia. Namibia also has thin capitalisation rules in terms of which the deduction of interest may be disallowed.

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.

What is applicable tax rate?

Applicable Tax Rate means, with respect to a Tax Year, the highest combined federal, state and local income tax rate (giving effect to the deductibility of state and local income taxes for federal income tax purposes) applicable to a corporation in any United States jurisdiction.

Is a bonus taxable in Namibia?

Bonuses are paid at the end of each tax year and accrue evenly throughout the year. The company car, with a cost of USD50,000 is used for both business and private and the employer is responsible for maintenance and petrol costs, i.e. the taxable benefit will be 18 percent of the cost of the car per annum.

How do I complete a tax return in Namibia?

1. STEP 1: Complete your personal details. Fill in your offices of registration (for e.g. Windhoek, Keetmanshoop, Walvis Bay)
2. STEP 2: Complete the back of the return now.
3. STEP 3: Complete the rest of the information on the front of the return.

Is foreign income taxable in Namibia?

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.

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.

Is 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.

Is housing allowance taxable in Namibia?

Taxation of Fringe Benefits:

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.