A tax return is a document taxpayers are required by law to accurately complete and send to NRA on a regular basis. This document provides details of taxpayers’ activities such as their taxable income, allowable expenses, rental income, capital gains and all other earnings and expenditure for a particular tax year. NRA issues tax returns forms to help taxpayers provide the required information with ease.
Why is it important to file a tax return?
It gives NRA an idea of whether or not your business is active or growing
it helps the NRA to know the level of business activities for a tax period
It helps the taxpayer to be able to pay the correct amount of tax or make tax claims/refunds
It helps NRA to correlate all your tax activities for the year ending and see if for example what you have imported equals what you have sold including closing stock and value addition
it helps NRA calculate tax liabilities/claims with accuracy
it helps GST registered businesses claim tax refunds or utilize their credits
Who should file a tax return?
All businesses registered by the Office of Administrator and Registrar General; they include:
Sole proprietors
partnership
Companies
Public enterprises / parastatals
Individuals who earn income from any source must file a tax return.
Types of returns:
Income Tax Returns—are filed on a yearly basis(90 days after the end of the year of assessment)
GST Returns—are file to provide information on the net difference between GST paid on input and GST charged on output. This must be submitted at the end of the month following the transactions
Withholding Tax Returns—are filed 15 days after the end of the month
PAYE Returns— are filed 15 days after the end of the month of payment of salaries and allowances
Payroll Tax Returns—are filed at the end of the first month of each calendar year of assessment
Use your taxpayer log in credential, enter password detail
Click log in
ITAS portal homepage will display
Click the submit a Return tab on the page
Return summary page will display showing outstanding Returns based on tax type available to file
Under the select column, click to select the tax type you want to file for
Click to select the period you want to file for and click continue
The Return page will display
Download template where necessary
Upload template
Complete attachment section if mandatory
View the Return summary page and click the check box to certify that the information given in the Return is true and correct
Click on the submit button to submit Return completed
Confirmation message displays
Click on Home icon to return to homepage
Refresh homepage and browse through to see balance of Return submitted
Make a payment if you have tax owing
Penalties for default:
The following penalties will apply upon late submission of returns and payment of taxes.
Income Tax : Corporate/trade tax—late filling: Le5, 000, 000.00 plus 10% of the tax payable PAYE and other withholding taxes—interest rather than penalties are levied on such: Between 1-30 days— 10% of the tax payable Between 31-90 days—15% of the tax payable Between 91-180 days— 20% of the tax payable Above 180 days—25%
GST: Late filling: Le 1, 000,000.00 or 5% of the tax payable (whichever is higher)
Rental Income Tax : 35% of tax payable
Payroll Tax—25% of tax payable
