Tax Changes to Come in Effect

PWC Namibia Business School hosted its annual tax symposium in Windhoek last week.

The symposium provided in-depth tax training and updates on income tax, employees tax and VAT and concluded with a thought leadership tax update breakfast session.

The symposium was attended by finance and tax adminitration personnel from several companies representing the banking, insurance, agriculture, energy and manufacturing sectors in Namibia.

Acting commissioner for inland revenue, Justus Mwafongwe confirmed that the draft amendment bills to the income tax act, value-added tax act and transfer duty act have been finalised and will be introduced during the current session of the National Assembly of Namibia by the minister of finance.

The expected tax amendments are lowering of the company income tax rate to 32%, increase in the VAT registration threshold from N$200 000 to N$500 000, provisions on voluntary VAT registration and inclusion of share transfers relating to immovable property in the transfer duty net.

Mwafongwe said the newly established large taxpayers office managed to improve and streamline tax compliance of companies with an annual turnover exceeding N$75 million. He disclosed that there are plans to set up a transfer pricing unit.

A senior representative from Customs and Excise Namibia, Stanley Gurirab said the move is set to accredit clearing agents which will address current problematic border declarations and correct reporting of import VAT and customs duties due by importers. Clearing agents have been told to apply for renewal of licences before 1 August.

He said goods will not be cleared unless written instructions by importers to its clearing agents have been attached for each consignment.

This will to a large extent address the current situation where agents use incorrect import VAT account numbers to clear consignments, Gurirab said.

Source : The Namibian