05 Sep 2017 14:00pm
RUNDU, 05 SEP (NAMPA) The Ministry of Finance has extended its Tax Recovery Incentive Programme that ended in July this year to run for six more months.
It said in a media statement issued Monday the programme will commence on 11 September 2017 and end 11 March 2018.
It is the second time the ministry runs the tax amnesty after the first, which started in February this year and ended on 31 July.
The programme aims to collect tax arrears owed to the Receiver of Revenue, and applies to all taxes administered by Inland Revenue Departments such as Income Tax, Value Added Tax (VAT), VAT Import, Employees Tax Stamp Duty, Non-resident Shareholders Tax, and Tax on Royalties.
The ministry will waive penalties levied on all tax payments and submission of tax returns, and write off 70 per cent of the interest balance on all tax accounts of tax payers who pay the capital tax amount in full and 30 per cent interest, reads the statement.
This means that once the full principal tax amount and 30 per cent of interest are paid, the remaining portion of the interest and penalties will be waived.
There will be no write-off of any capital tax amount.
During the first Tax Recovery Incentive Programme, 80 per cent of interest was written off once the capital amount and 20 per cent of interest were paid.
The incentive also allows business owners who have failed to register their businesses as tax payers, to do so and register to benefit from the incentive.
The ministry said tax payers who are unable to settle their balances with a single payment can pay in instalments on an agreed fee with Inland Revenue between September and October, and pay monthly instalments until their debt is settled within the tax incentive period.