Tax on churches charities

REV.EDWARD AMADHILA, TECHNICAL ADVISER AT THE TOV HIV/AIDS ORPHANS AND VULNERABLE CHILDREN ORGANIZATION IN TSUMEB WRITES:At our institution Dr. Emilia "Helena Ndume" Vatilifa and Dr. Venecia "Chris Barnard" Gaeses are young kids with dreams to become an eye specialist and snake bite specialist. Both are in private schools fully paid by Tov and our private donors.We were shocked to learn last week that Government has finally decided to tax religious, charitable, educational and all other institutions under Section 16 of the Income Tax Act if they derived their income from commercial activities. The sad part is that they decided churches, educational institutions, charities and welfare organizations will pay not individual tax but corporate tax. (Individual tax is 18% and corporate tax is between 32% and 34%).If we sell one chicken, for example for N$100, we will have to pay tax of N$34 to the State.Yes,we will pay tax if we are selling thousands of chickens per day or week, but if it is only three per day to buy seven loafs of bread a day, it will not make sense. We will have to close down.This decision will create a dependence syndrome.Organizations like Tov is not subsidize by Government, it is full funded by private donations and our own income. If we start to pay corporate tax, it is the end of our community vision of self-sustainable, self-supportive and self-governing commitment to meet Government all the way.Currently organization like Tov is getting only a monthly donation of N$3 300 per month (N$3 000 from our patron Mrs. Kauna Ndilula and family and from Cornerstone International Fellowship Tsumeb branch N$300). There is no way for Tov to continue to help children in our community if we are only bringing in a guaranteed N$3 300 per month. We do get international donations, but they do not come in every month.We are grateful for people like Mary Forthesy and her family from the UK for being our biggest donor.We will have to approach the Government to help us to continue to help children in our community. We and you know that they are facing a lot of challenges. Technically there is no money.In many countries oversea they deduct your tax if you donate to charities. In Africa we are taxing the charities. I do need answers on this.Last year we saw 20 charities/NGOs closing their doors in Namibia. This year we will see more charities/NGO's closing down if this inhuman law is implemented.In fact, churches and charities are doing the work of the Government. We are supposed to complement each other, help our communities and our country's men and women.We are not denying the fact that there are those churches or organizations with lots of money.As of this month we will take careful decisions to see if we will indeed continue to help children in Tsumeb or close down or reduce the number of children.But it also presents a chance for you and me to donate to charities, because donation is not taxable. Just imagine 500 friends donating N$50 per month. It will generate N$25 000 - a far cry from N$3 300.We are ready to be guided by the tax experts, for example about if the commercial tax is on profit or not. We will widely consult before we throw in the towel.Let's sincerely pray for our country and our children in our country.

Tax on churches charities

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Republikein 2025-06-17

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Tax on churches charities

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Republikein 2025-06-17

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