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.
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Registered Manufacturers
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Exporters of Manufactured Goods
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Export Processing
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Corporate Tax
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Set at a rate of 18% for a period of 10 years, where after it will revert to the general prevailing rate.
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80% allowance on income derived from exporting manufactured goods.
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Exempt
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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
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Registered Manufacturers
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Exporters of Manufactured Goods
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Export Processing
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Eligibility and Registration
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Enterprises engaged in manufacturing. Application to the Ministry of Trade and Industry and approval by the Ministry of Finance.
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Enterprises that export manufactured goods whether produced in Namibia or not. Application and approval by the Ministry of Finance.
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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.
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Corporate Tax
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Set at a rate of 18% for a period of 10 years, where after it will revert to the general prevailing rate.
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80% allowance on income derived from exporting manufactured goods.
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Exempt
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VAT
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Exemption on purchase and import of manufacturing machinery and equipment.
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Normal treatment
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Exempt
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Stamp and Transfer Duty
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Normal Treatment
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Normal treatment
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Exempt
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Establishment Tax Package
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Negotiable rates and terms by special tax package.
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Not eligible
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Not eligible
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Special Building Allowance
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Factory buildings written off at 20% in first year and balance at 8% for 10 years
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Not eligible
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Not eligible
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Transportation Allowance
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Allowance for land-based transportation by road or rail of 25% deduction from total cost.
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Not eligible
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Not eligible
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Export Promotion Allowance
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Additional deduction from taxable income of 25%
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Not eligible
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Not eligible
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Incentive for training
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Additional deduction from taxable income of between 25% and 75%
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Not eligible
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Substantial, issued by Government on implementation of approved training programme.
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Industrial Studies
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Available at 50% of cost
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Not eligible
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Not eligible
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Cash Grants
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50% of direct cost of approved export promotion activities.
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Not eligible
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Not eligible
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