The Namibian Finance Minister presented her budget for 2012/3 on 28 February 2012. The budget revealed no significant changes other than withholding tax of 25% on services provided by non-residents to residents of Namibia and the taxation of disposals of mineral licences.

On 17 August 2011 a press release was issued to follow up the proposed changes to the various tax laws as announced on 21 July 2011.   Except for the changes listed below, the proposed changes as announced on 21 July will remain.   Income Tax

In the Government Gazette No. 4530 of 30 July, the Minister of Labour and Social Welfare stated the following amendments to the regulations of the Social Security Act.

Consider structuring your property transactions three dimensionally.

Since the introduction of capital gains tax, (CGT) the investment in and sale of investment properties and the taxation consequences thereof have been more important than ever before. This has also highlighted the need for careful consideration prior to entering either as seller or buyer into an investment or exiting from an investment.

Claim of input tax paid on goods imported

Section 18(1)(a)(ii) of the Value Added Tax Act, 2000 (Act No. 10 of 2000), as amended, (“the VAT Act”)

This practice notes serves to clarify when input tax paid on goods imported in the furtherance of a taxable activity carried on by a registered person may be claimed and included in the VAT Return.

Section 18(1)(a)(ii) of the VAT Act provides as follows:

Tax filing season is underway and deadlines for postal submissions have already expired, don’t miss the eFiling submission.

There are penalties for failure to submit returns or changes in personal particulars before the closing date. However, taxpayers still have two options left to avoid paying fines of up to R16000.

Key dates:
The 2010 tax filing season opened on 1 July 2010.

The Ministry of Finance, Inland Revenue Department has made an important policy change with regards to the claiming of Import VAT.

Currently the taxpayer is claiming back the Import VAT on the VAT return in the period during which the import was made.

For example:  A taxpayer that is registered with even VAT periods (Category B) would have been able to claim back the Import VAT payments made on the returns 01/2010 and 02/2010 with the VAT return for 02/2010.

The Ministry of Finance issued a press statement with regards to the issuing of certificates of good standing for tax purposes, last week. 

The Ministry of Finance wish to remind all tenderers that it is a condition of the tendering process to submit an original certificate of good standing for tax purposes together with every tender.

The Ministry of Finance thus undertakes to issue the certificate of good standing for tax purposes within seven (7) days of the request.  It is therefore advisable to apply for the certificate well in advance.

The Ministry of Lands and Resettlement stated in a Media Release, issued on Friday the 2nd of July, that the land tax assessments for the financial year 2009/2010 were posted on the 22nd of June 2010.  The assessments which were posted were only for those landowners who furnished the Ministry with details of their postal addresses and whose properties are listed on the main valuation roll.

New regulations regarding the issuing of cheques to and by the Ministry of Finance was recently announced in the Government Gazette and will be effective from 10 June 2010.