GIPF pays three pensioners less than N$1 each for tax refund

THE Government Institutions Pension Fund (GIPF) says it has paid three of its beneficiaries less than N$1 each in tax refunds.

A statement issued by the fund yesterday said the fund will be paying its members N$118 million in tax refunds.

GIPF chief executive Martin Inkumbi said members of the fund are pensioners, spousal and child beneficiaries.

“The fund will pay out approximately N$118 million to 24 173 qualifying annuitants, who will receive amounts ranging from N$1 to approximately N$17 000,” he said.

The tax refunds have been calculated according to a formula determining how much members have overpaid in taxes.

“The refunds are based on a calculation formula that considers tax paid to date by members, the amount that would have been payable by the member based on the new tax tables, and determining the difference between the two figures, resulting in the amounts to be refunded,” Inkumbi said.
The highest paid beneficiary got N$17 000. Inkumbi said the payments would be paid yesterday.

GIPF spokesperson Edwin Tjiramba said the refunds would only be paid to those who receive an annuity (a regular payment) and are required to pay taxes on their annuity income.

“The refunds will be paid to all qualifying tax-paying annuitants, who do not have active tax directives or notice to agent as issued by Namibia Revenue Agency (Namra), and to deceased members whose refunds shall be paid to their estates through the Master of the High Court,” he said.

Tjiramba said there were approximately 946 annuitants who would not receive refunds because they owe Namra.

“Approximately 946 annuitants who owe tax to Namra will not receive a refund, and in case of changes they are advised to contact Namra to provide a new tax directive to the fund, instructing it to either cancel or amend the existing tax directive,” he said.

Tjiramba added the fund is verifying outstanding tax refunds for members receiving a disability grant who received a 3% increase and backpay adjustments earlier this year.

“Any adjustments for this group of annuitants will be done with the December 2024 payroll,” he said.

He said the members eligible to receive refunds would receive an SMS from the fund informing them of this.

The tax refund comes as a result of the amendment to the Income Tax Act, which was effective from 1 March this year.

The amendment was, however, only gazetted in September, and taxpayers started receiving refunds in October.

Companies have until the end of February next year to pay the refunds, or taxpayers will have to file for a tax refund with Namra next year.