The Ministry of Finance has announced that new tax rates, outlined in Paragraph 1 of Schedule 4 of the 1981 Income Tax Act, took effect on March 1, 2024.

As part of this change, the Namibia Revenue Agency (NamRA) has directed employers to adjust Pay-As-You-Earn (PAYE) deductions to correct any overpayments made before the new rates were implemented. Employers are required to reimburse employees for any excess PAYE collected, ensuring that all deductions match the updated statutory rates.

The Ministry states that this adjustment is intended to ensure fair tax collection for the 2024/25 tax year. Employers must begin the reimbursement process promptly after the new rates are officially published in the government gazette.

Employers can offset the reimbursements against their monthly tax obligations to NamRA. If the reimbursement cannot be deducted from the PAYE due to insufficient funds, employees can claim a refund when they file their 2025 income tax returns, due by June 30, 2025.

This also applies to employees who have switched jobs during the tax year and are no longer with their previous employers.