Mastering Namibia’s Tax System: An Essential Guide to Empower Small Businesses Owners
Intro
If you are a small business owner in Namibia, understanding the country’s tax system is crucial for your financial health. As a business, you are required to pay taxes on the profits earned and submit annual financial statements.
In this blog post, we will explain the tax system in Namibia for companies and close corporations.
Tax Rates and Deductible Expenses
Companies that do not engage in mining activities are taxed at a flat rate of 32%. However, there are ways to reduce your taxable income by deducting expenses incurred to produce income. For example, if your business incurred expenses on repairs made to the place of business, such expenses can be deducted from your taxable income.
In addition to repairs, one third of the cost of capital expenditure such as vehicles and machinery is also deductible for three years. An allowance of 20% of the cost of erecting a building is deductible in the year the building was brought into use, and 4% for each of the following 20 years.
However, there are some expenses that are not allowed as deductions from income. These include domestic or private expenses, expenses not related to the production of income, and loss or expense recoverable from an insurance contract. For a full list of expenses not allowed, see section 24 of the Income Tax Act.
Online Submissions
With the advancement in technology, tax submissions can now be done online, making it more convenient and faster. The Integrated Tax Administration System (ITAS) is a secure online platform that allows you to submit all tax returns and payments online. The system is user-friendly and provides a step-by-step guide to assist you in submitting your returns.
Similarly, customs and excise submissions can be done via the Automated System for Customs Data (ASYCUDA) portal. This portal provides a secure online platform for businesses to submit customs declarations and pay duties and taxes. The portal is also user-friendly and provides a step-by-step guide to assist you in submitting your declarations.
How Integris Financial Solutions Can Help You Navigate This Tax System
With the advancement in technology, tax submissions can now be done online, making it more convenient and faster. The Integrated Tax Administration System (ITAS) is a secure online platform that allows you to submit all tax returns and payments online. The system is user-friendly and provides a step-by-step guide to assist you in submitting your returns.
Similarly, customs and excise submissions can be done via the Automated System for Customs Data (ASYCUDA) portal. This portal provides a secure online platform for businesses to submit customs declarations and pay duties and taxes. The portal is also user-friendly and provides a step-by-step guide to assist you in submitting your declarations.
Conclusion
Understanding the tax system in Namibia is crucial for small business owners. At Integris Financial Solutions, we can help you prepare and submit your tax returns accurately and on time. We also offer payroll solutions and tax planning services to help you save money in the long run. Contact us today to learn more about our tax services and how we can help your business succeed.
