NamRA Tax Amnesty: A Tax Relief Programme to Settle Tax Arrears

In a bid to recover tax arrears and promote e-filing, the Minister of Finance has announced the introduction of the NamRA Tax Amnesty programme. This programme offers a unique opportunity for taxpayers with outstanding tax arrears to settle their dues and benefit from a complete write-off of penalties and interest. By filing their tax returns electronically on the Integrated Tax Administration System (ITAS) Portal, taxpayers can avail themselves of this relief. This article will explore the objectives of the tax relief programme, its benefits, registration process, payment methods, and the deadlines for participation.

This article will explore the objectives of the tax relief programme, its benefits, registration process, payment methods, and the deadlines for participation.
This article will explore the objectives of the tax relief programme, its benefits, registration process, payment methods, and the deadlines for participation.

1. Relief Programme Objectives

The Tax Relief Programme aims to achieve the following objectives:

Recover tax arrears

The primary goal of the programme is to recover unpaid taxes that individuals and businesses owe to the government. By encouraging taxpayers to settle their outstanding balances, the government can ensure a fair and effective tax system.

Increase e-filers

One of the secondary objectives of the programme is to promote the use of the Integrated Tax Administration System (ITAS) Portal for electronic filing. By requiring taxpayers to file their returns electronically as a prerequisite for participating in the NamRA Tax Amnesty programme, the government aims to enhance efficiency and reduce paperwork.

Offer a relief

The main selling point of the NamRA Tax Amnesty programme is the substantial relief it offers to eligible taxpayers. By settling the capital tax arrears within the programme period, taxpayers can benefit from a 100% write-off of both penalties and interest. This relief provides a significant incentive for individuals and businesses to fulfill their tax obligations promptly.

2. Summary

The NamRA Tax Amnesty programme was officially announced in Parliament on 24th February 2023 by the Minister of Finance. Here are the key points to consider:

  • The relief is applicable to taxpayers with outstanding tax arrears.
  • To participate, taxpayers must file their tax returns electronically on the ITAS Portal.
  • Once the capital tax arrears are settled within the programme period, taxpayers can avail themselves of a 100% write-off of penalties and interest.
  • Taxpayers need to register on the ITAS Portal at https://www.itas.namra.org.na to participate in the programme.
The NamRA Tax Amnesty programme was officially announced in Parliament on 24th February 2023 by the Minister of Finance
The NamRA Tax Amnesty programme was officially announced in Parliament on 24th February 2023 by the Minister of Finance

How to Participate in NamRA Tax Amnesty programme

To benefit from the NamRA Tax Amnesty programme, taxpayers must complete the following steps:

  1. Register to partake in the NamRA Tax Amnesty on the ITAS Portal.
  2. File tax returns electronically using the ITAS Portal.
  3. Settle the outstanding capital amount within the programme period.

Benefits of Participation

By participating in the NamRA Tax Amnesty programme, taxpayers can enjoy the following benefits:

  • 100% write-off of interest and penalties once the capital amount is settled.
  • Removal of outstanding tax arrears from their record.
  • Avoidance of legal consequences and potential further penalties.
To shed light on the recovery of taxes under the NamRA Tax Amnesty programme, it is essential to understand the allocation of payments as per the tax laws
To shed light on the recovery of taxes under the NamRA Tax Amnesty programme, it is essential to understand the allocation of payments as per the tax laws

3. Tax Law – Recovery of Taxes

To shed light on the recovery of taxes under the NamRA Tax Amnesty programme, it is essential to understand the allocation of payments as per the tax laws. The following order of allocation is observed for both Income Tax and Value Added Tax:

Income Tax:

  1. Capital
  2. Interest
  3. Penalties

Value Added Tax:

  1. Capital
  2. Interest
  3. Penalties

According to section 31(6) of the Value Added Tax Act and section 81(4) of the Income Tax Act, payments towards outstanding taxes are allocated based on the aforementioned order.

4. ITAS Rules

To ensure accurate payment allocation, the ITAS system has been configured to follow the tax laws’ order of allocation. The system first allocates payments towards the capital amount, followed by interest and then penalties. This programming design ensures that all interest and penalty balances are automatically reversed once the capital amount reaches zero and the taxpayer registers for the NamRA Tax Amnesty programme.

To participate in the NamRA Tax Amnesty programme, registration must be completed on the ITAS Portal
To participate in the NamRA Tax Amnesty programme, registration must be completed on the ITAS Portal

5. NamRA Tax Amnesty Registration on ITAS Portal

To participate in the NamRA Tax Amnesty programme, registration must be completed on the ITAS Portal. The registration process is as follows:

  1. Taxpayers with outstanding returns and balances must register for the Amnesty on the ITAS Portal.
  2. Taxpayers with only penalties on their account should register for the NamRA Tax Amnesty programme, even though no payment is required. This step allows for the automatic reversal of penalties.
  3. Taxpayers with only interest balances on their account should also register for the NamRA Tax Amnesty programme, as it enables the automatic reversal of interest balances.
  4. Upon selecting the registration function on the portal, taxpayers will see the displayed amounts and can proceed by clicking the “Agree and Register” button to complete the registration process.

6. Making Payments

To settle outstanding tax arrears and benefit from the NamRA Tax Amnesty programme, taxpayers have two modes of payment available:

  • The payment allocation follows the tax laws and ITAS business rules, prioritizing capital, interest, and penalties.
  • Taxpayers should not pay the interest amount separately.

Cash mode of payment

  • The payment allocation follows the regulations outlined in the Tax Act.
  • Interest is automatically written off as part of the NamRA Tax Amnesty programme.
Tax accounts with only penalties and no outstanding returns will reflect a zero balance within 24 hours of registering for the NamRA Tax Amnesty programme
Tax accounts with only penalties and no outstanding returns will reflect a zero balance within 24 hours of registering for the NamRA Tax Amnesty programme

7. Inception Date – 1 April 2023

The following scenarios will occur on the ITAS Portal:

  • Tax accounts with only penalties and no outstanding returns will reflect a zero balance within 24 hours of registering for the NamRA Tax Amnesty programme.
  • Tax accounts with a debit balance of interest only (with no outstanding returns) will reflect a zero balance within 24 hours of registering for the relief programme.
  • Tax accounts with a debit balance consisting of penalties and interest (with no outstanding returns) registered by 31st October 2024 will reflect a zero balance for both penalties and interest within 24 hours of registration.
  • Note: All accounts with capital balances must be cleared before a taxpayer can benefit from the NamRA Tax Amnesty programme.

By adhering to the guidelines, settling outstanding tax arrears, and taking advantage of the NamRA Tax Amnesty programme, taxpayers can resolve their tax issues, eliminate penalties and interest burdens, and pave the way for a fresh start.

Remember, the NamRA Tax Amnesty programme provides a limited-time opportunity, so act promptly and embrace this chance to regain financial peace of mind.

For any further inquiries or assistance, please visit the ITAS Portal or contact your local tax authorities.

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