Shot in the arm
SHOT IN THE ARM: Namibians earning less than N$100 000 annually can expect some income tax relief starting next month. This comes as a result of a simulation conducted based on the adjusted threshold values following finance minister Ipumbu Shiimi's announcement of new income tax rates last week.
Here is a simplified calculation using annual gross income as the basis. Prior to the threshold adjustments, an individual with a hypothetical income of N$90 000 per year would have had to pay an annual tax rate of 18% on taxable income between N$50 001 and N$100 000. After the threshold changes, the same person is now exempt from paying taxes, resulting in an additional "after-tax" income of N$750 per month. GRAPHIC: NAMPOLO ANGULA
Here is a simplified calculation using annual gross income as the basis. Prior to the threshold adjustments, an individual with a hypothetical income of N$90 000 per year would have had to pay an annual tax rate of 18% on taxable income between N$50 001 and N$100 000. After the threshold changes, the same person is now exempt from paying taxes, resulting in an additional "after-tax" income of N$750 per month. GRAPHIC: NAMPOLO ANGULA
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