SMEs to get relief from VAT administration – Shiimi

RUNDU: Minister of Finance and Public Enterprises, Iipumbu Shiimi on Wednesday said the Financial Year 2024/25 budget will lift mandatory registration threshold for Value Added Tax (VAT) from N.dollars 500 000 to N.dollars 1 million.

Shiimi made the statement when he delivered this year’s budget statement in the National Assembly in Windhoek.

According to the minister, increasing the threshold will relieve approximately 23 000 small and medium enterprises from VAT administration, which will enable them to focus on their core activities, while simultaneously freeing capacity at the Namibia Revenue Agency to focus on large taxpayers.

Shiimi also confirmed the introduction of the Internship Tax Incentive Programme as previously announced. The programme is aimed at further incentivising employers to enrol more interns by providing an additional corporate tax deduction.

The total financial implication for government is estimated at N.dollars 126 million.

Shiimi said the budget also proposes building improveme
nt deductions to address the issue of urban decay within inner cities and to maintain existing infrastructure, while encouraging investment.

‘In this regard, a capital depreciation allowance of 10 per cent each year will be applicable on the costs of buildings erected, added to, extended or improved and which are used for trade purposes,’ he stated.

Shiimi further indicated that as a measure to support improved access to housing, the brackets for transfer duties and stamp duties will be adjusted for inflation.

Accordingly, the exempt level will be lifted from N.dollars 600 000 to N.dollars 1.1 million.

Moreover, the threshold to trigger the transfer duty rate of 8 per cent will be increased to N.dollars 3.15 million effective this financial year.

Source: The Namibia Press Agency