The following direct and indirect taxes are levied in Namibia:

  • Corporation tax (applicable to Companies, Close Corporations and External Companies)
  • Personal income tax
  • Withholding tax
  • General sales tax
  • Additional sales levy
  • Other taxes include: transfer tax, stamp duty, customs duty and municipal rates.

 

 

Registered Manufacturers

Exporters of Manufactured Goods

Export Processing

Corporate Tax

Set at a rate of 18% for a period of 10 years, where after it will revert to the general prevailing rate.

80% allowance on income derived from exporting manufactured goods.

Exempt

Namibia has no capital gains tax, estate duty, inheritance tax or donation tax. Partnerships are not treated as separate taxable entities and partners are taxed on their share of net partnership income.

The Income Tax and VAT are administered by the Minister of Finance via the office of the Commissioner for Inland Revenue in Windhoek, who is also responsible for the administration of Stamp and Transfer Duties.

To avoid entrepreneurs being taxed in both countries, Namibia and the UK have signed a Double Taxation Agreement.  

 

Government has introduced incentives that are largely concentrated on stimulating manufacturing in Namibia and promoting exports into the SADC region and to the rest of the world.

SUMMARY OF SPECIAL INCENTIVES FOR MANUFACTURERS, EXPORTERS AND EPZ ENTERPRISES

 

Registered Manufacturers

Exporters of Manufactured Goods

Export Processing

Eligibility and Registration

Enterprises engaged in manufacturing.
Application to the Ministry of Trade and Industry and approval by the Ministry of Finance.

Enterprises that export manufactured goods whether produced in Namibia or not.
Application and approval by the Ministry of Finance.

Enterprises engaged in manufacturing, assembly, packaging or break-bulk and exporting mainly to outside of SACU markets.
Application to the EPZ Committee through the ODC or EPZMC.

Corporate Tax

Set at a rate of 18% for a period of 10 years, where after it will revert to the general prevailing rate.

80% allowance on income derived from exporting manufactured goods.

Exempt

VAT

Exemption on purchase and import of manufacturing machinery and equipment.

Normal treatment

Exempt

Stamp and Transfer Duty

Normal Treatment

Normal treatment

Exempt

Establishment Tax Package

Negotiable rates and terms by special tax package.

Not eligible

Not eligible

Special Building Allowance

Factory buildings written off at 20% in first year and balance at 8% for 10 years

Not eligible

Not eligible

Transportation Allowance

Allowance for land-based transportation by road or rail of 25% deduction from total cost.

Not eligible

Not eligible

Export Promotion Allowance

Additional deduction from taxable income of 25%

Not eligible

Not eligible

Incentive for training

Additional deduction from taxable income of between 25% and 75%

Not eligible

Substantial, issued by Government on implementation of approved training programme.

Industrial Studies

Available at 50% of cost

Not eligible

Not eligible

Cash Grants

50% of direct cost of approved export promotion activities.

Not eligible

Not eligible