Namibia: Tax developments in response to COVID-19
General Information
This page offers an overview of tax developments being reported globally by KPMG member firms in response to the Novel Coronavirus (COVID-19).
The content will be updated on a regular basis. However, due to the fast-moving pace of change, it may not always reflect the most current developments in a given jurisdiction. Please refer to the date of accuracy and refer to the relevant links, under additional information, for original source information.
Date accurate as of: 24 June 2020
The total Stimulus and Relief Package in Namibia provides for direct support to businesses, households and cash flow acceleration payments for services rendered to Government as well as additional support, guaranteed by the Government.
Tax-related measures include:
- Accelerated repayment of overdue and undisputed VAT refunds. The Namibian Government will immediately speed up such repayments to enhance the cash flow of enterprises paying VAT. The total amount of the refunds to be settled within one week of the implementation of these measures stands about N$3.0 billion.
- Accelerated payment of overdue and undisputed invoices for goods and services provided to the Namibian Government. The Namibian Government will immediately speed up such payments to boost the cash flow of enterprises that are suppliers to the Government. This amount stands at about N$800.00 million.
- Tax-back loan scheme for tax registered and tax paying (PAYE) employees and self-employed individual persons who have lost income or part thereof or experiencing difficulties due to COVID-19 outbreak. To provide breathing room for cash flow-constrained individuals who are taxpayers, they can borrow an amount equal to 1 / 12th of their tax payment in the previous tax year, to be repaid after one year. The interest rate will be concessional, below prime, on the back of a Government guarantee. The total guarantee is capped at the maximum of N$1.1 billion, based on the PAYE tax register and the potential loan size. The Namibian Government, in collaboration with the banking institutions, may institute statutory and administrative measures to enhance compliance with loan conditions.
- The filing deadline for individual tax returns which was due on 30 June 2020 has been extended to 30 September 2020. The payment date however remains the same.
- This extension is also intended to allow employers who might not have been able to submit Employee Tax (ETX) returns on the Integrated Tax Administration System (“ITAS”) due to the Covid-19 challenges to do so by 30 September 2020.
