JUST IN: Expanding knowledge on tax in Namibia
Primus Shaapopi is a chartered accountant with an interest in taxation. He recently shared an opinion piece shedding light on taxation in Namibia.
He defined taxes as a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services and transactions.
He said tax dynamics need to be understood clearly. When not clearly understood, they often lead to misconceptions.
“There is a common misconception that the person liable for tax is the person that is required to pay the tax. This is not always the case. Often, the person actually paying tax does so on behalf of the person who is liable to pay the tax. To some degree, in Namibia, most employers withhold and pay the employee’s taxes to the revenue authority, Namibia Revenue Agency (NamRa),” he said.
He explained that the employee is liable to pay tax, however, the employer is responsible for the actual payment of this tax, and this is an essential concept to understand.
He defined taxes as a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services and transactions.
He said tax dynamics need to be understood clearly. When not clearly understood, they often lead to misconceptions.
“There is a common misconception that the person liable for tax is the person that is required to pay the tax. This is not always the case. Often, the person actually paying tax does so on behalf of the person who is liable to pay the tax. To some degree, in Namibia, most employers withhold and pay the employee’s taxes to the revenue authority, Namibia Revenue Agency (NamRa),” he said.
He explained that the employee is liable to pay tax, however, the employer is responsible for the actual payment of this tax, and this is an essential concept to understand.
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Namibian Sun
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