How To Register as a Tax Payer In Namibia

What is Tax?

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.

Who is a Tax Payer?

A taxpayer is a person or organization subject to pay a tax. Modern taxpayers may have an identification number, a reference number issued by a government to citizens or firms. The term “taxpayer” generally characterizes one who pays taxes.

How To Register as a Tax Payer In Namibia

Steps to Follow When Register as E-Filer or Taxpayer Registration 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 a Taxpayer (pdf)

Frequently Asked Questions (FAQ’s)

How does Namibia tax work?

A sliding scale is used to determine the tax rates applicable to individuals. For all years of assessment effective 1st March 2009, the minimum rate is 0% and the maximum rate applied is 37%. The Namibian tax year commences on 1 March to the last day of February that subsequent year.

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.

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.

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.

What is the current limit for tax deductible pension deductions in Namibia?

Employee contributions to Namibian registered pension, provident, retirement annuity funds and policy of insurance for educational purposes are deductible to a maximum amount of NAD40,000 per annum.

What is the VAT rate in Namibia?

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.

Does Namibia have capital gains tax?

There is currently no donations tax, estate duty or capital gains tax in Namibia. Certain capital gains are taxed as normal income.

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.

How do I claim tax back in Namibia?

How to claim your VAT Refund

  1. The words “Tax Invoice”
  2. The seller’s name and address.
  3. The seller’s VAT registration number.
  4. Your name.
  5. The date of issue of the tax invoice.
  6. A tax invoice number.
  7. A full description of the goods purchased.
  8. The cost of goods excluding 15% VAT.

Do you pay tax on dividends in Namibia?

Dividends. Dividends declared by a Namibian company to a non-resident person will be subject to non-resident shareholders tax (NRST), a WHT. NRST is payable at the standard rate of 10% where a company holds more than 25% shares in the Namibian company. In all other cases, NRST payable is 20%.

Who should 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.

How much is the old age pension in Namibia?

Namibia’s old age social pension, renamed in 1998 as Basic Social Grant (BSG), guarantees all Namibia’s residents over 60 years of age a monthly unconditional allowance of 1 100 Namibian dollars (N$) per month. It corresponds approximately US$ 78 per month lifting the grant beneficiary well above the poverty line.

Is interest income taxable in Namibia?

WTI does not apply to Namibian companies, as defined in the Income Tax Act, as interest income is taxed as part of a Namibian company’s annual income tax. Also known as Retention Tax, WTI is a form of tax where tax is deducted from interest before distributions are made to the individual.

How does housing allowance work Namibia?

Your housing allowance would have been split between a taxable and a non taxable portion on your payslip. Normally 1/3 of your housing allowance is tax free, so you are not taxed on the 1/3.

Is dividends received exempt from tax?

Dividends received by individuals from South African companies are generally exempt from income tax, but dividends tax at a rate of 20% is withheld by the entities paying the dividends to the individuals.

What is provisional tax Namibia?

The first provisional payment for income tax is due within six months from the commencement of the company’s financial year (at least 40% of tax payable at year-end is paid on first submission). The final provisional payment is due within seven months after the financial year-end of the company.

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.

Are pension funds taxable in Namibia?

What happens with my pension fund when I retire? You may take up to a maximum of one third of your savings in a cash lump sum. This cash lump sum is taxable. The balance must be used to purchase an income/annuity, and this income/annuity is taxable.