Question

Ms. Beukes (a Namibian resident) received remuneration of N$85 000 and a housing benefit of N$6 000 from her employer for the year ended 28/2/2020. How much of her income is exempted?

Answer 1

1. Remmuneration received for the year N$ 85000 is fully taxable.
2. The taxable benefit can be reduced where the employer has a housing scheme registered with the Namibian Ministry of Finance. In this case, a third of the cash equivalent of the housing benefit will be exempt for tax, that is, where the taxable benefit for housing is N$ 85,000, only two thirds (N$56,667) will be included as a taxable benefit and subject to tax.The exempted part will be N$ 28,333.
3. In addition to the above basic exemption of N$ 50,000 is also available to Ms. Beukes, as upto N$ 50,000 of taxable income no tax has to be paid as per the law.
4. So adding the both the total exemption for the year will be N$ 78,333.