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Energy & Renewables|Tax Advisory & Compliance
PAYE Compliance Remediation for a Construction Company with Foreign Workers
The company had been managing PAYE deductions using a spreadsheet last updated in 2019.
Headline Outcome
Voluntary disclosure accepted by NamRA. Penalty exposure reduced significantly compared to what a formal assessment would have attracted. SSC query resolved with a payment plan for outstanding contributions. The company now submits monthly EMP reconciliations through our office and has a fully compliant PAYE process.
The Client
A Namibian construction company based in Windhoek employing 140 staff, including Namibian nationals and foreign contract workers on fixed-term assignments across multiple project sites.
The Challenge
The company had been managing PAYE deductions using a spreadsheet last updated in 2019. NamRA identified discrepancies between amounts deducted and amounts remitted. Foreign employees had been treated as non-residents for the full duration of their contracts, which was incorrect in several cases given the length of their Namibian assignments. The Social Security Commission had also raised a query on contributions for contract workers.
Our Approach
We reconstructed the PAYE position for the prior three years, reassessing the residency status of each foreign employee against the 182-day threshold in the Income Tax Act. We recalculated the PAYE liability, identified the shortfall, and prepared a voluntary disclosure to NamRA before the audit progressed to formal assessment. We also reviewed the SSC contributions and prepared a reconciliation submission. We then implemented a compliant payroll process going forward.
The Outcome
Voluntary disclosure accepted by NamRA. Penalty exposure reduced significantly compared to what a formal assessment would have attracted. SSC query resolved with a payment plan for outstanding contributions. The company now submits monthly EMP reconciliations through our office and has a fully compliant PAYE process.
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