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The ministry of finance issued a media release last week regarding the extension for submission of employees tax (PAYE) returns via the ITAS portal.

Background

Previously, employers were required to prepare and submit their PAYE returns online through the Integrated Tax Administration System (ITAS) by latest on 20 of September 2019.

The online return submission includes completing a excel spreadsheet template with detailed payroll information of respective employees and uploading such onto the ITAS portal.

Upon consultation with various stakeholders, the ministry of finance noted that multiple taxpayers (employers) were not able to submit their PAYE returns online through the ITAS portal, within the required format.

This was as a result of various factors, including concerns raised with payroll software systems.

Outcome

The ministry of finance has therefore granted a further extension for employers to submit their monthly PAYE returns manually up until 20 February 2020.

This will allow employers sufficient time, in preparing for online filing beyond the provided extension date. No manual PAYE return submissions will be accepted after 20 February 2020.

Important to note

· Employers who wish to submit PAYE returns manually, are obliged to update all manual return submissions through uploading electronic versions on the ITAS portal by 20 March 2020;

· Employers should note that the extension does not apply to the monthly employees tax (PAYE) payments due to Inland Revenue; and

· Employers are encouraged to perform online PAYE return submissions as soon as possible.

Johan Nel is a partner/director at PwC Namibia. This bi-monthly column on tax matters is published in Market Watch on Mondays.