Namibian Quick Tax Guide

Making an impact that matters

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 Contents

Contents
Individuals………………………………………………………………………………………………………………………………….................................................................. ........... 3
Tax Rates and Rebates ...................................................................................................................................................................................................... 3
Exemptions ....................................................................................................................................................................................................................... 3
Deductions......................................................................................................................................................................................................................... 3
Donations .......................................................................................................................................................................................................................... 3
Taxation of Married Persons ................................................................................................................................................................................................. 4
Employees’ Tax (PAYE)........................................................................................................................................................................................................... 4
Travel Allowance................................................................................................................................................................................................................... 4
Social Security Contributions ................................................................................................................................................................................................. 4
Valuation of Certain Other Fringe Benefits .......................................................................................................................................................................... 4
Company Car Fringe Benefit .............................................................................................................................................................................................. 4
Free or Subsidised Services................................................................................................................................................................................................ 4
Housing and other Soft Loans ........................................................................................................................................................................................... 4
Meals .................................................................................................................................................................................................................................... 4
Residential Accommodation .............................................................................................................................................................................................. 5
Farmers ................................................................................................................................................................................................................................ 5
Taxation of Trusts................................................................................................................................................................................................................ 5
Donations Tax, Estate Duty, Capital Gains Tax ................................................................................................................................................................ 5
Non-residents...................................................................................................................................................................................................................... 7
Corporate income tax rates .............................................................................................................................................................................................. 7
Annual Duty on Share Capital ........................................................................................................................................................................................... 7
Vocational Education and Training Levy ......................................................................................................................................................................... 7
Capital Allowances for Businesses ................................................................................................................................................................................... 8
Manufacturers..................................................................................................................................................................................................................... 8
Exporters of manufactured goods ................................................................................................................................................................................... 8
Export Processing Zones (EPZ)........................................................................................................................................................................................... 8
Transfer Pricing ................................................................................................................................................................................................................... 8
Thin Capitalisation............................................................................................................................................................................................................... 8
Land Tax ............................................................................................................................................................................................................................... 9
Environmental Tax .............................................................................................................................................................................................................. 9
Export levies ......................................................................................................................................................................................................................... 9
Exchange Controls .............................................................................................................................................................................................................. 9

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 Quick Tax Guide 2022/23 | Namibia

Individuals

01 Tax Rates and Rebates

Individuals, Estates & Trusts (Year ending 28 February 2022)

Taxable income Rate of tax

Individuals
N$0 – N$50 000 Not taxable
N$50 001 – N$100 000 18% of taxable income
N$100 001 – N$300 000 N$9 000 + 25% of taxable income above N$100 000
N$300 001 – N$500 000 N$59 000 + 28% of taxable income above N$300 000

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N$500 001 – N$800 000 N$115 000+ 30% of taxable income above N$500 000
N$800 001 – N$1 500 000 N$205 000 + 32% of taxable income above N$800 000
N$1 500 001 and above N$429 000 + 37% of taxable income above N$1500 000

Companies
and Trusts
Exemptions
Interest (for persons other than a company) received from:
Government stock or securities, including Treasury Bills - Unlimited;
Post Office Savings Bank - Unlimited; and
Foreign institutions 1 – Unlimited; and

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Other Taxes,
Provided that acquisition is funded from non-Namibian capital or investment, relates to a foreign business
and the interest is taxed in the foreign country.

Duties and Levies

Dividends
Local and foreign dividends are exempt in the hands of Namibian residents.

Deductions

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• A deduction, limited to N$40 000 per annum for aggregated contributions to pension, provident
and retirement annuity funds and contributions towards tertiary education policies. Maximum
deduction is expected to increase to N$ 150 000 in the 2023 tax year.
Exchange • No deduction is granted for personal medical expenses or medical aid contributions.
Control

Donations
Donations to registered welfare organisations or approved educational institutions are deductible
provided that:
• An individual is not nominated as the beneficiary;

05 •
•
•
A certificate is obtained from the institution or organisation;
Compulsory school fees are not allowed as a deduction; and
The deduction does not create or increase an assessed loss.
Contacts

1
1

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 Quick Tax Guide 2022/23 | Namibia

Taxation of Married Persons

Husbands and wives are taxed separately.

Employees’ Tax (PAYE)

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PAYE must be deducted at source on a monthly basis by the employer. The tax threshold is an
annual taxable income of N$ 50 000. PAYE is not required to be deducted from genuine/ bona fide
allowances granted to employees to defray business expenditure. From 30 December 2015
Individuals
payments to directors of private companies and directors’ fees of public company directors are
subject to PAYE.

Travel Allowance
Expenditure incurred for business purposes may be deducted from the allowance. The capital cost

02
Companies
of the vehicle may be claimed over three years. Business expenditure is calculated in the ratio of
business kilometers over total kilometers. A detailed logbook must be kept.

and Trusts Social Security Contributions

The employer and employee must each make Social Security contributions at the rate of 0.9% of
the employee’s basic salary (maximum N$81 per month).

Valuation of Certain Other Fringe

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Other Taxes,
Benefits
Duties and Levies

Company Car Fringe Benefit

• Taxable value of the fringe benefit is 1.5% per month of the cost price of the vehicle where the
employer bears all costs relating to the vehicle and 1.4% per month where the employee bears
the fuel costs.

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Exchange
• Pool vehicles are taxed at N$100 per month.

Free or Subsidised Services

Control The taxable value of the fringe benefit is the cost to the employer of providing the service less the
consideration paid by the employee.

Housing and other Soft Loans

• The taxable value is the difference between the interest payable on the loan by the employee

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and 12% per annum.
• Exempt loans:
 Casual loans not exceeding N$3 000 in aggregate;
Contacts  Study loans granted to an employee for own studies; and
 Approved housing scheme loans or subsidies: Generally, one third of the taxable benefit is
exempt.

Meals
The taxable value of meal coupons and free or subsidised meals, if used and received at the
residence, is N$ 100 per month for every family member of 6 years and older. Meals provided at
business premises are exempt.

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 Quick Tax Guide 2022/23 | Namibia

Residential Accommodation
An employee provided with residential accommodation owned by his employer is taxed according
to the following table

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Rooms / Monthly Taxable Benefit

8
1 2 3 4 5 6 7 8
+
Individuals
Individuals Location N$ N$ N$ N$ N$ N$ N$ N$ N$

WHK 500 750 1000 1400 1800 2200 2800 3400 4000

WB SWK
350 550 750 1000 1300 1700 2100 2550 3000

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Other Municipal Areas
250 375 500 700 900 1100 1400 1700 2000

Other Towns 125 175 250 350 450 550 700 850 1000

Companies
Companies Generally, one third of the taxable benefit is exempt if the employer has an approved housing
and Trusts
and Trusts scheme.

Farmers
Farmers are taxed in the same manner as individuals or companies with the exception of certain
provisions regarding capital expenditure. Certain capital expenditure may be deducted in full in the

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Other Taxes,
Taxes,
year in which the expenditure is incurred, limited to the farming taxable income for the year. This
includes a deduction of capital expenditure relating to power supply. Any excess farming capital
expenditure can be carried forward to the next year of assessment. Farmers need to ring-fence
Other
Dutiesand
Duties and Levies
Levies farming income in certain circumstances.

Taxation of Trusts
A trust is taxed as a person (see tax rate table for individuals). Income earned by a vesting trust
and certain distributions made by a discretionary trust are taxed in the hands of the beneficiary. A

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proposed amendment will see trading trusts be treated as a company for tax purposes. In the
main budget of 2022/2023 a delay in the proposal was announced.

Exchange
Exchange
Control
Control Donations Tax, Estate Duty, Capital Gains Tax
There is currently no donations tax, estate duty or capital gains tax in Namibia. Certain capital gains,
including any change in ownership of mineral and petroleum licenses or the right to mine minerals
or petroleum in Namibia, are taxed as normal income.

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Transfer Duty
Transfer duty is levied on the value of any property acquired. The rates below are effective from 1
June 2013:
Contacts
Contacts Any property acquired by natural persons including mineral rights (except the category immediately
below):

Value Rates of duty

N$0 – N$600 000 0%

N$600 001 - N$1 million N$ nil + 1%
N$1 million - N$2 million N$4 000 + 5%
Over N$2 million N$54 000 + 8%

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 Quick Tax Guide 2022/23 | Namibia

Agricultural land acquired by natural persons and financed by Agricultural Bank of Namibia:

Value Rates of duty

01 N$0 - N$1.5 million

N$1.5 million - N$2.5 million
Over N$2.5 million
0%
N$ nil + 1%
N$10 000 + 3%
Individuals

Any property, including mineral rights, acquired by persons other than natural persons, including trusts

• 12% of the value of the property

02
In determining the value for transfer duty purposes, VAT, where applicable, is excluded.

The sale of shares/ membership interest in property owning companies/ close corporations are
Companies currently not subject to transfer duties.
and Trusts
Value-Added Tax (VAT)

VAT is imposed on the supply and import of most goods and services at a rate of 15%. Qualifying
exports and certain other supplies may be zero-rated, including the following foodstuffs:

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• Mahango, mahango meal and maize meal;
• Fresh and dried beans (excl. canned or frozen beans);
• Sunflower cooking oil;
• Animal fat used for preparation of food;
Other Taxes,
• Bread flour, cake flour and bread;
Duties and Levies
• Fresh milk;
• White and brown sugar; and
• Sanitary pads (to be added to the zero-rating list in 2022).

Stamp Duty

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Exchange
Stamp duty is payable at 0.2% on the issue or transfer of shares. Shares listed on the Namibian Stock
Exchange are exempt from this duty.

Stamp Duty is also imposed on the acquisition of immovable property and a range of other
Control instruments.

The rates on the acquisition of immovable property from 1 June 2013 by an individual are:

Value Rates of duty

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0 – N$600 000 0%
Over N$600 001 N$10 for every N$1 000

Contacts Stamp duty is payable at N$12 for every N$1 000 or part therefore of the value of the immovable
property where purchased by a juristic person or a trust.

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 Quick Tax Guide 2022/23 | Namibia

Withholding Taxes

Non-residents

01
Certain payments to non-residents are subject to withholding taxes as shown below:

Dividends 2 10% / 20%

Royalties 3 10%
Individuals Interest 4 10%
Service fees and foreign directors 5 10%
Entertainment fees 6 25%

Certain dividends declared to foreign-held Namibian holding companies are subject to non-resident shareholder’s tax at 10%.
Where the shareholding is less than 25%, the withholding tax rate is 20%. These rates may be reduced by a tax treaty.

02
The rate is applicable from 30 December 2015. This rate may be reduced by a tax treaty. Withholding tax on royalties includes use of
industrial, commercial or scientific equipment from 30 December 2015.
Namibian registered Banks and Unit Trust Management Companies must withhold a final tax on interest of 10% as from 1 March
2009. From 30 December 2015 all foreign interest is also subject to 10% withholding tax.
This withholding tax is applicable on management fees, administration fees, technical fees and consulting fees. Effective from 30
Companies December 2011 at a rate of 25%. Rate changed to 10% on 30 December 2015.This rate may be reduced by a tax treaty.
and Trusts (1) Effective from 30 December 2011.

Corporate Taxes
Corporate income tax rates

• Basic Rate 7 32%

03
• Diamond mining – effective rate 8 55%
• Registered manufacturers 9 18%
• Mining (other than diamond/petroleum)7 37.5%
• Petroleum mining 35%
Other Taxes,
Duties and Levies • Branches of foreign companies 32%
• Retirement funds Exempt

(1) Rate is effective for years of assessment commencing on or after 1 January 2015. Previously the rate was 33%.
(2) Mining companies and manufacturing companies pay tax on non-mining/ non-manufacturing income at 32%.
(3) In terms of the current wording in the Income Tax Act, the rate was abolished. Changes may be made for the rate to still apply until
2025.

04
Exchange
Annual Duty on Share Capital

Annual duty N$6.50 per N$10 000

Control (Minimum N$80)

Levied on a company’s issued share capital plus share premium and certain undistributed reserves.
In the case of an external company, the duty is levied on the capital of the foreign parent company.

Vocational Education and Training Levy

05 A monthly VET levy of 1% of the employer’s monthly payroll is payable by employers with an annual
payroll of N$1 million or more. Certain employers are exempt. The levy is payable to the Namibian
Training Authority.
Contacts

Employers may claim a refund in relation to training costs incurred during the relevant year.

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 Quick Tax Guide 2022/23 | Namibia

Capital Allowances for Businesses

• Moveable assets used for trade purposes 33⅓%

• Buildings used for trade purposes (On cost of erection):
• in year brought into use 20%
• subsequent 20 years 4%

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• Certain farming capital expenditure 100% (Limited to farming taxable income)
• Intellectual property Period of use
• Lease premiums Period of lease 10
• Leasehold improvements Period of lease
Individuals
(4) Maximum 25 years

Incentives
Manufacturers

02
• Registered manufacturers qualify for the following incentives until 2025:
• Buildings: The normal 4% annual allowance is increased to 8% (applies for 10 years); and
• An additional 25% deduction for:
 certain export marketing expenses;
Companies  approved training costs;
and Trusts
 remuneration of manufacturing employees; and
 Certain land-based transportation costs (applies for 10 years from granting of
manufacturing status).

Exporters of manufactured goods

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Reduction in taxable income 11 80%

(5) From the export of goods manufactured in Namibia (excluding fish/meat products). Applicable until 2025

Other Taxes,
Duties and Levies Mining - Minerals and Petroleum

The sale, donation, expropriation, cession, grant, transfer or other alienation of mineral or petroleum
licences or mineral or petroleum rights is subject to income tax. The sale of shares, directly or
indirectly, in a company that holds such licences or rights is subject to income tax.12

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(6) Applicable for minerals from 1 January 2012 and for Petroleum from 30 December 2015.

Export Processing Zones (EPZ)

Exchange
Control EPZ status confers total exemption from income tax, VAT, customs and excise duty, stamp and
transfer duty, but not PAYE and withholding taxes. Essential requirements include conducting a
manufacturing activity and exporting all goods outside the Southern African Customs Union. All tax
exemptions are repealed from 1 January 2025.

Transfer Pricing

05 Transfer pricing legislation requires an arm’s length consideration to be charged for cross border
goods or services transactions between connected persons.
Contacts
Thin Capitalisation

Thin capitalisation requires foreign held Namibian companies to be adequately capitalised. Interest
charged on excessive debt is not tax deductible.

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Land Tax

Land tax is payable for every 12 month period ending 28 February at the following rates (applied to
the unimproved site value):

Namibian resident owner 0.75%

01
Non-resident owner 1.75%
On each additional farm the rate increases by 0.25%

Individuals Environmental Tax

Carbon taxes, environmental levies on light bulbs, certain tyres and certain plastic products are
applicable on importation or manufacturing at specified rates per unit of the affected items.

Export levies

02
Companies
Export levies13 apply on the export certain of minerals, gas and crude oil products, certain fish
products and certain forestry products for all exports made on or after 1 June 2017.

and Trusts Rates vary between 0% and 2%.

Exchange Controls

The Namibian Dollar is linked to the South African Rand (N$1=ZAR1). Namibia is a member of the
Common Monetary Area (with South Africa, Lesotho and Eswatini). The Common Monetary Area is

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currently subject to a system of exchange controls, administered in Namibia by the Bank of
Namibia.

Other Taxes,
Duties and Levies

04
Exchange
Control

05
Contacts

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 Quick Tax Guide 2022/23 | Namibia

Contacts

01
For more information, contact your nearest Deloitte tax office.

Individuals Gerda Brand Olivia Nghaamwa

Taxation Director Senior Taxation Manager
gbrand@deloitte.co.za onghaamwa@deloitte.co.za
+264612855062 +264612855159

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Companies
Never Muleya
Assistant Taxation Manager
Lahya Shapwa
Assistant Taxation Manager
lshapwa@deloitte.co.za
nmuleya@deloitte.co.za
and Trusts +264612855123
+264612855106

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Aron Haifene Shoopala Angombe
Taxation Consultant Junior Taxation Consultant
ahaifene@deloitte.co.za sangombe@deloitte.co.za
+264612855037 +264612855054
Other Taxes,
Duties and Levies

Marikka Nekwaya

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Junior Taxation Consultant
mnekwaya@deloitte.co.za
+264612855104

Exchange
Control

05 Facebook:: https://www.facebook.com/DeloitteNamibia
Twitter: https://twitter.com/deloittenamibia Website:
https://www2.deloitte.com/za/en/namibia.html
Contacts Linkedin: https://www.linkedin.com/company/deloitte/

This guide is based on the Budget proposals tabled in Parliament by the Minister of Finance on
24 February 2022. These proposals are, however, subject to approval by Parliament. The information
contained in this guide is for general guidance only and is not intended as a substitute for specific
advice in considering the tax effects of particular transactions. While every care has been taken in the
compilation of the information contained herein, no liability is accepted for the consequences of any
inaccuracies contained in this guide.

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