The Ministry of Finance and Public Enterprises has announced changes to the Pay – As – You – Earn ( PAYE ) deductions to address overpayments made by employees . These adjustments are in response to the new statutory tax rates introduced under the Income Tax Act of 1981 , which will take effect on 01 March 2024 . Employers are required to update PAYE deductions accordingly and reimburse employees once the new tax rates are officially published . Minister of Finance and Public Enterprises , Iipumbi Shiimi , in a notice issued on Saturday stated that these changes are made under the provisions of Schedule 2 and Schedule 4 of the Income Tax Act . He said that employers are responsible for ensuring the total amount of employee tax deductions for the 2024 / 25 financial year matches the updated tax rates outlined in the legislation . He clarified that if over – deductions occur due to the revised statutory tax rates , employers are required to refund these amounts promptly . ‘ The employer must deduct the reimbur
sed PAYE amount from future monthly employee tax payments , which are to be paid to the Namibia Revenue Agency ( NamRA ),’ he said . For employees earning N . dollars 100 000 or less annually , employers may not have enough tax payable to process the refund . In such cases , the employee will be required to claim the refund when submitting their 2025 income tax return by June 30 , 2025 . Shiimi also stated that provisions had been made for employees who changed positions throughout the tax year . He stated that those personnel must seek reimbursements from their previous employers while filing their 2025 tax return on or before 30 June 2025 . He also stated that the adjustments are intended to prevent anomalies in tax payments and guarantee that employees are taxed in accordance with the revised rates for the 2024 / 25 tax year . Employers must follow the instructions outlined in the notice to ensure compliance with the Income Tax Act , he stated . Further details and updates on these tax modifications would
be supplied after the new statutory tax rates are officially legislated , he stated .
Source: The Namibia News Agency