(Source: CRS)

The Ministry of Finance has developed an integrated information technology solution for the administration of taxes. The new system, known as Integrated Administration System (ITAS) is replacing the existing legacy system (Taxlive) and became operational on 17 January 2019.

Taxpayers are urged to register as E-service users and maximize the benefits of electronic filing. To register, log in on www.itas.mof.na and download the ITAA Portal User Guide.

Key changes employers should take note of:

  • Taxpayer Identification Number (TIN): The new system requires a “0” (zero) to be added in front of your existing TIN. Current TIN’s (7 digits) on Taxlive will be migrated to ITAS, where an additional digit, ‘0’, will be added in front of the existing 7 digits in order to make up the 8 digit TIN required for ITAS.
  • Employees Tax Return Tax details (ETX): An employer’s Tax return is designed to capture employees tax detail. This change will be effective as from 1 March 2019, and all employers will be required to submit a detailed monthly ETX return which contains Employees’ PAYE 4 details as opposed to just a monthly payment. An excel sheet template designed for this purpose can be downloaded from the portal and can be uploaded after completing it when the taxpayer submits the return.
  • Tax Period Number for all Tax Types: With ITAS, the tax period number does not represent the calendar Month. For example, period 01/2019 does not mean January 2019, but it means period one (1) of 2019.

The submission of monthly employee tax (PAYE) returns are expected to be lodged online, through the ITAS portal as from March 2019. The online submission is done by completing an Excel spreadsheet with detailed payroll information of employees and uploading it on ITAS.

The Ministry was informed that some employers are not ready to submit their PAYE returns electronically due to the need to adjust their payroll systems in order to be compliant with the ITAS requirements.

It was agreed that affected employers may submit their monthly PAYE returns manually until September 2019. Thereafter no manual submissions for PAYE will be accepted.

Employers opting to submit their returns manually must take note that they are obliged to update all manual submissions by uploading electronic versions on ITAS by September 2019.

The deadline for submission and payment remains the 20th of every month.