Here’s your chance to “mend the fence” with the tax man

Inland Revenue prepared to write off as many as 95% of interest

The Ministry of Finance’s Department of Inland Revenue announced a tax relief programme to assist Namibians to get their personal tax affairs in order and also benefit from a massive interest write-off.

The tax relief programme starts on 1 February 2021. Every Namibian taxpayer are advised to make use of this opportunity as they will simply have no excuses if they are not in good standing with the Receiver of Revenue by the commencement of the tax year 1 March 2022. This is applicable on all Pay As Your Earn (P.A.Y.E.) taxpayers.
In a media statement on Wednesday, the Ministry of Finance explained tax payers owning the Receiver of Revenue outstanding taxes can receive interest write offs of between 75 % and as many as 95 % if they settle outstanding tax amounts as from 1 February 2021.
If the taxpayer pays off outstanding taxes in the period 1 February 2021 to 31 May 2021, 95 % of interest will be written off. If the taxpayer settles outstanding taxes between 1 February 2021 and 1 February 2022, a total of 75 % of interest will be waived.
The amount of tax owed (capital amount) will not be waived. That means what you owe will have to be settled. It is important though to try and settle it within the time frames provide above to be able to have interest written off, according to the statement issued by the Ministry of Finance’s chief of public relations, Tonateni Shidhudhu.
The statement also assures tax payers who settle their outstanding taxes (capital amounts) before 1 February 2021 will also receive the same interest write-offs.
The relief programme is applicable to all taxpayers for taxes administered by the Inland Revenue Department (that means among others Value Added Tax and Customs and Excise related taxes are not forming part of this relief programme).
Taxpayers who want to make use of this tax relief programme first need to register on the Ministry of Finance’s Integrated Tax Administration System (ITAS). Once registered as an online taxpayer, the process can start to file tax returns online, have it assessed by the Inland Revenue Department and tax amounts outstanding will be available to the taxpayer on his or her ITAS online portal.
“Taxpayers will only benefit upon settling the outstanding capital in full. Taxpayers who intend to pay their outstanding taxes in installments are required to make the necessary arrangements with their applicable tax revenue office”, the statement concludes.

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