The Namibia Revenue Agency (NamRA) has announced an extension to the transitional arrangements for obtaining Tax Certificates of Good Standing.
The pronouncement by the tax authority means businesses will have more time to comply with the recently revised guidelines.
Originally scheduled to come into effect on June 1st, 2024, the new guidelines will now be implemented on April 1st, 2025, providing a nine-month grace period for taxpayers to adjust to the updated procedures.
NamRA’s Acting Chief Strategic Communications and Support Engagements, Victor Musiwa, said that the current procedures for issuing Tax Certificates of Good Standing will remain in place until the new guidelines are implemented.
“These procedures offer flexible payment arrangements for taxpayers with outstanding tax liabilities,” he said.
He further explained that businesses applying for their first Tax Certificate of Good Standing need to pay 10% of their outstanding tax balance, while existing taxpayers can register a payment plan on the Integrated Tax Administration System (ITAS) that spreads the remaining balance over twelve months.
“When requesting additional certificates, businesses must demonstrate consistent payments towards their tax obligations, either through monthly installments or by exceeding the agreed-upon amount. For procurement contracts, businesses awarded procurement contracts are required to settle all outstanding tax liabilities immediately,” Musiwa said.
“Taxpayers who fail to comply with their registered payment plan will face a penalty of 20% of their outstanding tax balance before receiving a Certificate of Good Standing. These measures are designed to enhance administrative simplicity and promote general compliance.”
