Tax Returns – Due Dates
Statutory Requirements of all Close Corporations, including non-trading and dormant Close Corporations.
Every year, all Close Corporations must submit certain documents or returns to the Ministry of Trade and Industry, as well as the Ministry of Finance – Inland Revenue (i.e. the Receiver of Revenue). In summary, these include the following:
Ministry of Trade and Industry
- Annual Duty Return (CC7)
Ministry of Finance
- Two provisional tax returns (During every financial year)
- Self-Assessment of Return of Income (At the end of every financial year), also referred to simply as Income Tax Return (ITX)
- Annual Financial Statements (AFS) signed by the accounting officer and attached to the Income Tax Return
Our Fee Structure (Close Corporations)
The Close Corporation Act requires that every Close Corporation must appoint an accounting officer. As the accounting officers of your Close Corporation, Prestige Accounting and Tax Services will charge you a standard annual fee, plus additional fees calculated per hour for the preparation of the Annual Financial Statements and for the calculation and completion of the Income Tax Return.
You will therefore be charged at least twice a year
- Annual Fees – once per year (normally in December for the following year) on a fixed basis; and
- Preparation of Annual Financial Statements (AFS) and completion of the Income Tax Return – once a year on a per hour basis
A possible third invoice can be raised if provisional tax calculations are required. This will be charged on an hourly basis
Ad hoc supplementary services including additional secretarial services, Tax Consulting, Monthly Bookkeeping, Management Statements, VAT, PAYE, etc., are also available and are charged either on an hourly basis or a prescribed fixed rate as and when required.
The annual fees of Prestige Accounting and Tax Services are charged every year in December, applicable to the following calendar year. This annual fee covers certain secretarial as well as tax compliance services as required by Ministry of Trade and Industry and Ministry of Finance.
The following is covered in the annual fees:
- A fixed amount for acting as accounting officer
- Maintenance of statutory books and records of the Close Corporation, including storing these documents in a secured safe
- Completion and submission of two provisional tax returns submitted during the applicable calendar year excluding calculations if required
- Lodgement of the Annual Duties (CC 7) plus the standard N$80 stamp duties.
We automatically send out the annual fees and do not wait for an explicit instruction from our clients.
If your annual fees remain unpaid, we
- cannot submit the Annual Duties (CC 7). This may result in additional stamp duties required by the Ministry of Trade and Industry – up to N$ 400.00 per year.
- will not submit your provisional tax returns. This may result in additional taxes levied by the Ministry of Finance – up to N$100 per day per late return.
Calculation of provisional taxes and submission of returns
As stated above, submission of provisional tax returns twice a year is included in the annual fee. Excluded is the calculation of these taxes. This will be charged separately as from 2013 as new legislation changed the previously stipulated basis for calculation. As nil-returns do not require calculation, this does not apply.
Preparation of Annual Financial Statements (AFS)
- Annual Financial Statements are required for every financial year and must be submitted with the Income Tax Return (Self-Assessment of Return of Income)
- Although we do try to contact our clients on time, it is considered the client’s responsibility to initiate the process of drafting of the statements by contacting us and providing us with documentation/information
- The charges are based on an hourly rate and will therefore differ from one Close Corporation to another and from one year to another.
- We retain the right to withhold the financial statements until the invoice is paid in full.
Completion and Submission of the Income Tax Return (Self-Assessment of Return of Income)
Upon completion of the annual financial statements, the annual tax return is also completed and submitted to the Receiver of Revenue. This is charged on a fixed basis.