Guest Contributor | Jan 14, 2022 | 0
Finance Ministry announces relief to taxpayers with outstanding balances
The Ministry of Finance this week announced a relief to taxpayers with outstanding balances, with effect from 01 February 2021.
In a statement issued on 04 November, spokesperson of the ministry, Tonateni Shidhudhu, said the ministry will write off 95% of the interest balance and reverse all penalties for taxpayers who settle the capital amount within a period of three months from 01 February 2021. Taxpayers who settle their capital before the 01 February 2021 will also benefit.
The ministry will also write off 75% of the interest balance and reverse all penalties for taxpayers who settle the capital amount within a period of twelve months from 01 February 2021.
However, no capital amount owing to Inland Revenue Department will be written off and consequently taxpayers who fail to settle the outstanding capital will not benefit from the relief programme.
Penalties and interest settled or set off prior to the effective date of the relief programme will also not be refunded or credited to the account.
“The relief is aimed at supporting Namibian citizens and businesses facing hardship and cash flow problems exacerbated by COVID-19,” Shidhudhu said.
To qualify for the relief, taxpayers should first register as electronic filers on the portal of the Integrated Tax Administration System (ITAS). Upon registration as electronic filers, taxpayers must file all outstanding tax returns electronically on all active tax accounts.
Taxpayers will only benefit upon settling the outstanding capital in full and those who intend to pay instalments are required to arrange a payment plan with any of the Inland Revenue regional or satellite offices.
Shidhudhu said the relief programme does not suspend the taxpayers’ obligation to pay taxes on time, as the Inland Revenue Department will continue to collect outstanding taxes from taxpayers who have either not made a settlement arrangement or who have not honoured such a settlement plan.