Providing you with informed commentary on current developments in the local tax and business arena.
Our monthly analysis and comments on new law and administrative changes assist business executives to identify developments and trends in law and Inland Revenue practice that might impact their business.
Namibia Revenue Agency (NamRA) | Infrastructure Downtime
With a letter dated the 21st of July 2021, the Namibia Revenue Agency (NamRA) issued a communication to stakeholders regarding infrastructure downtime that will be taking place. The downtime is expected to take place on Saturday, the 24th of July 2021 from 07:00 (am) to 14:00 (pm).
Transfer Pricing: Staying on track with the arm's length principle
The term “transfer pricing” (or “TP” for short) is on everybody’s lips these days. It generally refers to the rules and methods applied for pricing transactions between related entities under common ownership or control. Based on general TP rules, entities within the same group operating from more than one country (also known as “connected persons”) will be required to ensure that transactions between them are carried out at arm’s length.
In terms of a Practice Note issued by the Ministry of Finance in 2006, the arm’s length principle is based on standards applied internationally. For a transaction to be classified as having been carried out at arm’s length, it “should have the substantive financial characteristics of a transaction between independent parties, where each party will strive to get the utmost possible benefit from the transaction”.
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