Staff Writer
The Namibia Revenue Agency (NamRA) has reminded taxpayers, traders, tax professionals and the public of their legal obligation to retain business records and supporting documents for at least five years in line with Namibia’s tax legislation.
NamRA said the requirement is provided for under the Income Tax Act, 1981 (Act No. 24 of 1981), the Value-Added Tax Act, 2000 (Act No. 10 of 2000), and the Customs and Excise Act, 1998 (Act No. 20 of 1998).
The agency said taxpayers and traders are generally required to keep relevant books, records and supporting documents for a period of five years, as prescribed by the applicable legislation.
NamRA further clarified that it will not request documents that fall outside the statutory retention period. However, exceptions apply where recently submitted income tax returns, VAT returns or customs and excise declarations require supporting documentation, irrespective of the period to which they relate.
The agency added that documents may also be requested beyond the five-year retention period if the request is linked to a criminal investigation that is anticipated or already underway.
NamRA said the approach is consistent with Namibia’s tax laws and reflects its commitment to administering revenue legislation fairly, transparently and in accordance with the law.
Meanwhile, the government has tabled amendments to the Income Tax Act aimed at establishing an independent tax court, a move expected to strengthen fairness, transparency and public confidence in Namibia’s tax administration system.
Finance minister, Erica Shafudah has introduced the proposed amendments seeking to create a dedicated court to hear income tax and value-added tax appeals while also clarifying the separate roles of the minister and the commissioner in administering tax laws.
The move follows a 2021 High Court ruling which declared provisions governing the former special tax court unconstitutional.
The court found that the minister’s powers to both administer tax legislation and appoint members of the special tax court compromised the constitutional principle of a fair trial.
The new tax court will form part of the High Court structure as provided for under the Constitution and will function as an independent judicial institution tasked with delivering objective and impartial decisions free from external influence.
The court will serve as a guardian of transparency and fairness while helping to reinforce public trust in the country’s tax system.
The bill also reaffirms the hierarchy between the tax tribunal and the proposed tax court. The minister said tax disputes will first be heard by the tribunal, with dissatisfied taxpayers retaining the right to appeal to the tax court.
