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Withholding taxes: New compliance process

Namibian Tax Alert 02/2016

Keeping you in the know

Introduction

The 2015 Income Tax amendments in respect of withholding taxes (gazetted on 30 December 2015) require withholding tax type accounts to be registered with Inland Revenue. Registration and remittance forms for these withholding taxes are not yet available and an interim process has been put in place by the Ministry of Finance in this regard.

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Interim registration process

The interim registration process is as follows:

Application for registration for the relevant withholding tax should be in a letter addressed to:

Ms Shonghela
Ministry of Finance
Inland Revenue
5th Floor
Moltke Street
Windhoek

The following references will be applicable for each of the withholding tax types:

  • Withholding tax on foreign interest – the tax reference number of the taxpayer (i.e. the first seven digits of the tax reference number) and ending with a “-0-1-7”.
  • Withholding tax on royalties – the tax reference number of the taxpayer (i.e. the first seven digits of the tax reference number) and ending with a “-0-1-3”.
  • Withholding tax on dividends – the tax reference number of the taxpayer (i.e. the first seven digits of the tax reference number) and ending with a “-0-1-2”.

Payment process

Payments could be made via electronic funds transferred to:

General Revenue Account
Bank of Namibia
Account Number: 165001
Branch: 980172

To assist Inland Revenue with allocating withholding tax payments the following reference numbers must be used. Each deposit reference number begins with a compulsory three (3) letter sequence as indicated below, followed by the first seven numbers of the taxpayer’s reference number, followed by the tax type reference indicated above and followed by the relevant period.

Tax form rubric

Remittance forms

Remittance forms are not yet available and until such time that they are made available, we recommend that a letter be submitted to the Ministry of Finance containing details of the withholding tax type, the taxpayer’s reference number (see above), the applicable period and any other payment details relevant to the withholding tax being paid. The letter should be accompanied by proof of the electronic transfer that was made to Inland Revenue.

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