ITAS for Namibia

Frequently Asked Question

1. According to practice note No 3 – if an employee is paid a rate per kilometre for business travel, the total amount must reflect on the PAYE5, but PAYE need not be deducted (appropriate proportion of cost will be allowed as a deduction on personal income tax assessment). Should this value be included in the new ETX return in the “Subsistence and Travel Expense Allowance” column, but will not be included in the “Taxable Income” value and will also not be in the “Tax Liability

The system will add all the income together and calculate the tax liability based on the Gross Remuneration. The employer has to input the actual tax deducted, if Subsistence and Travel Expense Allowance income is included whereby its not subject to PAYE than the actual tax will be lesser than the tax liability calculation(your payroll tax liability will be different as per ITAS tax liability as your payroll system doesn't tax Subsistence and Travel Expense Allowance income). Note: The system will only post the tax deducted amount not the tax liability amount.

2. Should the sheet contain monthly values or annual values?

The sheet should contain monthly values.

3. If an employer made use of the ITAS portal from March 2019 – Feb 2020 (entire tax year), will the values submitted by the employer/s each month be accumulated to the specific employee’s personal tax account as annual values and will these values automatically be populated on Schedule 24 when the employee files his/her personal income tax return for 2020 or should the employee manually capture the values as per his/her PAYE 5 tax certificate?

The employee has to complete her/his return as per PAYE5 information together with other income and other expenses incurred by the taxpayer, ITAS will do the validation on PAYE5 information captured by the employee with the information provided by the employer for the entire tax year.

4. Should employers submit the old PAYE4 report for January 2019 and February 2019 as they did previous months?

Yes, the system currently accepts the old PAYE4 return.

5. Can the employer submit it electronically or at an IRD office?

Both options will be available but we strongly advise for Portal submissions (electronically).

6. According to the ‘communication’ on the ITAS website: Employers must submit this new detailed ETX return from March 2019 – is this mandatory for all employers?

Yes, this will be a mandatory requirement as from the ETX return of March 2019 (2020/01)

7. Will the monthly values accumulate to an annual value at the end of February 2020? If yes, should the employer then submit an annual recon based on the monthly values or only the manual PAYE5 tax certificates to each employee?

Yes, the monthly values will accumulate to an annual value but the employer will not be required to submit an annual recon. The employer should however render each employee with a PAYE 5 certificate.

FAQ

Frequently Asked Question