Income received from selling farm animals and game, leasing land for grazing and agricultural products is taxable. A farmer will also be taxed on the livestock or produce that has been donated or consumed.
Each farmer is required to indicate the number of farm animals at the beginning (01 March) and at the end of the year (28 Feb) in the income tax return.
A farmer is allowed to deduct all general expenses relating to farming operations, such as fodder and lick and rations for farm laborers.
Capital expenses that a farmer is allowed to deduct from income include:
The total of the capital expenses that can be deducted may not create a loss.
A complete list can be found under Schedule 1 to the Income Tax Act, Act 24 of 1981.
Each farmer is required to keep all the sales and purchases invoices, bank statements and any other bookkeeping records and submit them to Inland Revenue when requested to do so.
Each farmer must submit a self-assessment return of income: Individual Business &amp;amp; or Farmers (yellow tax return for farmers) on or before 30 September of each year.30 September 2022
The table below depicts the individual income tax rates for 2019 / 2020.
|Where the taxable amount-||Tax Rate|
|Does not Exceed N$ 50 000||No tax payable|
|Exceeds N$ 50 000 but does not exceeds N$ 100 000||18% of the amount by which the taxable amount exceeds N$ 50 000|
|Exceeds N$100 000 but does not exceeds N$ 300 000||N$9 000 plus 25% of the amount by which the taxable amount exceeds N$ 100 000|
|Exceeds N$ 300 000 but does not exceeds N$ 500 000||N$ 59 000 plus 28% of the amount by which the taxable amount exceeds N$ 300 000|
|Exceeds N$ 500 000 but does not exceed N$ 800 000||N$ 115 000 plus 30% of the amount by which the taxable amount exceeds N$ 500 000|
|Exceeds N$ 800 000 but does not exceeds N$ 1 500 000||N$ 205 000 plus 32% of the amount by which the taxable amount exceeds N$ 500 000|
|Exceeds N$ 1 500 000||N$ 429 000 plus 37% of the amount by which the taxable amount exceeds N$ 1 500 000|
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