Taxes in Namibia

Namibian tax law covers individuals, businesses, employers, companies, trusts and specific industries. NamRA administers and enforces domestic tax and customs, while the Ministry of Finance and Public Enterprises and its Tax Policy Unit develop tax policy. The main laws include the Income Tax Act 1981, Value Added Tax Act 2000, Transfer Duty Act 1993, Stamp Duties Act 1993 and Petroleum Taxation Act 1991. Namibia's tax currency is the Namibian dollar (N$). Income tax generally uses a source-based system with deemed-source rules. The source normally refers to where income originates or is earned rather than where the payment is received. Namibian-source income can therefore be taxable for residents and non-residents. Double taxation agreements may change the result for qualifying cross-border income. A Tax Residency Certificate from NamRA can support treaty-related claims, but it does not by itself remove Namibian tax on income that remains taxable under domestic law. For individuals, taxable income up to N$100,000 is taxed at 0%. The rates then apply progressively: 18% on the amount from N$100,001 to N$150,000, 25% above N$150,000 up to N$350,000, 28% above N$350,000 up to N$550,000, 30% above N$550,000 up to N$850,000, 32% above N$850,000 up to N$1,550,000 and 37% above N$1,550,000. The statutory formulas include the accumulated tax from the lower bands, such as N$9,000 plus 25% of the amount above N$150,000 and N$429,000 plus 37% of the amount above N$1,550,000. These rates apply from 1 March 2024. Employers with employees normally deduct employees' tax, commonly called PAYE, from remuneration and pay it to NamRA. An employer must generally register within 14 days after becoming an employer. The employer submits the electronic employees' tax return and payment by the 20th day after the end of the month. The annual employer return is due within 30 days after 28 February. An employee tax certificate, commonly called PAYE5, is generally due within 30 days after the February month-end, within 14 days after an employee leaves and within 7 days after the employer ceases business. Individual return deadlines depend on the taxpayer's income. A salaried or pension taxpayer generally files by 30 June. A farmer or individual conducting business generally files by 30 September. A person with salary income and additional income above N$5,000, or without PAYE deductions, may fall into the provisional-tax system. The usual provisional-tax dates are 30 August for the first payment and 28 February for the second payment. A provisional taxpayer must estimate taxable income and pay on time; underpayment can lead to additional tax. The stated provisional-payment thresholds are at least 40% of final tax for the first payment and at least 80% in aggregate. Business income is taxable whether the business operates formally or informally. Non-mining companies and close corporations generally pay a 30% statutory rate for financial years beginning on or after 1 January 2025. Other mining companies generally face 37.5%. Diamond mining companies face 50% plus a 10% surcharge, producing a combined rate of 55%. A registered manufacturer may qualify for an 18% rate on qualifying manufacturing income during the registration year and the following nine years. Companies and close corporations are automatically provisional taxpayers. Their first provisional payment is generally due within six months of the financial year beginning and the second by the financial year-end. The annual company return is generally due seven months after the financial year-end. A 2026/27 Budget proposal reportedly considered a 28% non-mining company rate, a 10% dividend tax and interest-deduction and loss-limit reforms. The reviewed statutory NamRA material does not evidence enactment of those proposals, so the 30% company-tax rate remains the current baseline used here. VAT is a tax on taxable supplies and imports. The standard rate is 15%. VAT registration is generally mandatory when taxable turnover exceeds N$500,000. Voluntary registration may be possible when taxable turnover exceeds N$200,000 but does not exceed N$500,000, subject to record-keeping, residence and compliance requirements. Zero-rated and exempt supplies are treated differently, so turnover calculations and input-tax claims require classification of the actual supplies. VAT returns are generally due by the 25th day after the end of the tax period. Import VAT is generally due by the 20th day after the month of import. VAT records must be kept in English at the Namibian business place, and taxable supplies generally require a tax invoice. Input-tax restrictions can apply to passenger vehicles, entertainment, club membership and private use unless a statutory exception applies. Withholding tax applies to specified payments. Withholding tax on payments to non-residents, often called WHT, is generally 10% for interest, royalties and management or consultancy fees, while director and entertainment fees generally carry 25%. Non-resident shareholders' tax on dividends, commonly called NRST, is generally 10% where the beneficial corporate shareholder holds at least 25% of the capital and 20% in other cases. The withheld amount and return are generally due by the 20th day after the month in which the tax was withheld. Late WHT can attract a penalty of 10% per month or part of a month and interest at 20% per year, subject to the statutory caps. NamRA and its ITAS system handle taxpayer and employer registration, VAT and withholding-tax administration, electronic filing, account statements, registration certificates, objections and Good Standing Certificate requests. Registration may require proof of identity or business details, bank information, a founding statement, a fitness certificate and projected turnover, especially for VAT registration. Electronic filing is available 24 hours a day, seven days a week. A Good Standing Certificate confirms filing and payment compliance; NamRA material describes it as generally free and valid for four months. Taxpayers calculate taxable income, file returns, pay amounts due and keep records that support deductions, exemptions and set-offs. A company must appoint a Namibia-resident public officer and maintain a notice address in Namibia. The claimant carries the burden of proving an exemption, deduction or set-off. NamRA may assess, audit records and apply anti-avoidance rules. Late provisional filing by an individual can attract N$100 per day, while late PAYE, VAT and WHT obligations generally attract a 10% penalty and 20% annual interest subject to statutory limits. A taxpayer can generally object to an income-tax assessment within 90 days and must provide detailed written grounds. A VAT objection is also generally due within 90 days. A VAT appeal is generally due within 60 days after the objection decision. Income-tax appeals follow the statutory special-court procedure. Cross-border payments may trigger withholding tax, treaty analysis, transfer-pricing requirements or more than one filing obligation. Section 95A transfer-pricing rules use the arm's-length principle and may require methods such as comparable uncontrolled price, resale price, cost-plus, transactional net margin or profit split. The transaction documents should support the chosen method and the comparability analysis. NamRA also administers transfer duty, stamp duties and petroleum taxation. Customs and excise are separate areas, although import VAT and tax allocation can connect them with the general tax system. The actual cash burden may therefore consist of tax payable, VAT collected for remittance, PAYE or WHT withheld for payment to NamRA, and penalties or interest when deadlines are missed.