Taxpayers must comply with freight tax regulations

Niël Terblanché

The Namibia Revenue Agency (NamRA) has issued a notice to all taxpayers regarding the declaration and payment of freight tax before 1 December 2023.

Commissioner Sam Shivute highlighted the importance of adhering to the stipulated regulations as set out in the Income Tax Act of 1981.

The tax, as outlined in Section 34 of the Act, focuses primarily on non-resident owners or charterers of ships and aircraft. It targets income generated from the embarking of passengers and the loading of livestock, mail, or goods within Namibian territory.

The levy applies to 10 percent of the gross income (considered taxable income) derived from such freight services.

Companies are subject to a flat rate of 32 percent. However, individual taxpayers will be assessed based on individual tax rates.

According to Shivute, freight tax must be settled before the departure of any ship or aircraft from Namibia.

“There is an exception for non-residents who have a recognized agent in the country.

Furthermore, NamRA holds the right to detain the clearance of any vessel or aircraft until complete payment of the tax,” he said.

NamRA encourages entities that have earned income from freight services to register, declare their earnings accurately, and ensure tax payment by 1 December 2023

The move comes as part of NamRA’s broader strategy to enhance tax compliance and ensure the proper administration of revenue collections in the country.

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