1. TAX UPDATE 15 OCTOBER 2014 SAFARI COURT HOTEL Presented by: Sam SHIVUTE COMMISSIONER : INLAND REVENUE MINISTRY OF FINANCE Inland Revenue

2. ﻲ Update on ITAS & BPR ﻲ VAT threshold ﻲ Capital Gain Tax status ﻲ Transfer Duty update ﻲ Large Taxpayer Office update ﻲ Objection email line ﻲ Issuance of Tax Directive & Rulings ﻲ Import VAT account update (suspensions) ﻲ GSC and tender process Tax Evasion: ﻲ Tender ﻲ Professionals ﻲ Businesses/Rental Tax refund status ﻲ Conclusion

3. ITAS UPDATE BPR UPDATE

4.  The current of N$200 000 is set in respect of annual taxable turnover, and a person whose annual taxable supplies exceed such limit is automatically a registered person whether he registers or not. The VAT threshold is N$200 000 in any 12-month period.  Taxable supplies mean the value of zero rated supplies and standard rated supplies and do not include exempt supplies.  In a case where taxable supplies does not exceed N$200 000 per annum, the Commissioner may permit VOLUNTARY REGISTRATION

5. CAPITAL GAIN TAX STATUS

6. Transfer duty bill still in progress, consultation with the affected ministry (Mines and Energy) Extensive consultation was done TRANSFER DUTY UPDATE

7. Launched, 30 June 2014 Office opened to the public on 07 July 2014 Way forward – Training, capacity building & recruitment implementation of Annual Plan Mining Unit Transfer Pricing Unit

8.  Total Number of objection received: 304  Total number dealt with: 131  Pending objection cases: 173 ReceivedCompletedPending Windhoek16133128 Otjiwarongo1073 Oshakati503119 Walvisbay825923 Rundu101 Keetmanshoop110

9.  Volume of old objections  Backlog  The Human Resource Capital

10. Tax Directive time to issue :7 working Days if tax status is up to date. If not 30 days to update the outstanding issues. Ideal time is 10 working days, but due to capacity constrain it takes much longer to issue the rulings. Currently working on improving the capacity with in the legislation tax policy and international matters

11. Few cases of VIA suspensions are being activated. Total VIA accounts suspended 3512 Total VIA defaults accounts suspended 5419 Legal action to be taken Debt recovery initiative

12.  New guidelines developed  Forged good standing certificate  Press release in due time