PAYE Registration in Namibia: Employer's Guide to NamRA PAYE
If you hire employees in Namibia, you are legally required to register for PAYE (Pay As You Earn) with NamRA. This guide explains who must register, how to apply, the monthly obligations, and the penalties for non-compliance.
What Is PAYE in Namibia?
PAYE — Pay As You Earn — is a system of collecting income tax directly from employees' salaries before they are paid. As an employer in Namibia, you are legally required to deduct PAYE from employees whose monthly taxable earnings exceed the tax threshold, and remit those deductions to NamRA (Namibia Revenue Agency) every month.
Who Must Register for PAYE?
Every employer who pays employees a salary above the annual tax-free threshold must register for PAYE with NamRA. This applies to:
- Close Corporations (CCs) with employees.
- Private Companies (Pty Ltd) with salaried directors or staff.
- NGOs and Section 21 companies with paid staff.
- Foreign companies operating in Namibia.
Documents Required for PAYE Registration
- Completed NamRA employer registration form (EMP1).
- Certified copy of company registration certificate (from BIPA).
- Certified copies of ID/Passport for directors or members.
- Proof of business address.
- Your existing Tax Identification Number (TIN) — you must have this before registering for PAYE.
Monthly PAYE Obligations
Once registered, you must:
- Deduct PAYE from each employee's taxable earnings every month.
- Submit an EMP201 return to NamRA by the 20th of the following month.
- Pay the deducted PAYE to NamRA by the same deadline.
- Submit an annual IRP5 reconciliation at tax year end (February 28).
Penalties for Non-Compliance
Failing to register, deduct, or remit PAYE on time results in penalties of 10% of the unpaid amount plus interest. Directors and members can be held personally liable for a company's PAYE arrears in some circumstances.
Can Chrimson Help With PAYE Registration?
Yes. Chrimson Consultants handles NamRA PAYE registration as part of our post-registration compliance services. We also offer monthly payroll support through our Compliance Retainer. Contact us to get started →
Need help registering your business in Namibia?
Chrimson Consultants handles company registration, BIPA compliance, NAMRA tax registration, and tender-readiness for Namibian businesses. Contact us today.