Business Tax

Business Income Tax is a tax collected from companies. The tax amount is based on the net income businesses obtain while exercising their business activity, normally during one business year.

Namibia operates on a source-based tax system, meaning the income from a source within Namibia or deemed to be within Namibia will be subject to tax in Namibia, unless a specific exemption is available.

In the event that Namibia has entered into a double tax agreement (DTA) with the country where the foreign company resides, such entity will only be taxable in Namibia if it has established a permanent establishment (PE) in Namibia.
Namibia has entered into DTAs with the following countries:

Related Tax Types

Income Tax

Namibia has adopted a Self-Assessment System. Under this system all taxpayers are required to compute their taxable income and file tax returns by the due date on an annual basis. Income received from selling farm animals and game, leasing land for g


Employee Tax

An employer is any person who pays an amount by way of remuneration to an employee. Each person who becomes an employer is required to apply to Inland Revenue Department for registration as an employer within 14 days of becoming an employer. An empl


Value Added Tax (VAT)

VAT is levied at the standard rate of 15% on the supply of most goods and services and on the importation of goods. It is mandatory for a person who carries on a business with an annual taxable turnover above N$500,000 to apply for VAT registration.


Withholding Tax

The Withholding of Tax is a tax charged on interest paid by any person to or for the benefit of a foreign person (which includes individuals, companies, etc) from a source within Namibia. The foreign person is responsible for the tax, but it must be


Stamp Duty

Stamp duty is the tax placed on legal documents, usually in the transfer of assets or property These legal instruments subjec to to stamp duty include: Antenuptial or postnuptial contract; High purchase agreement; Lease agreement; Mortgage bond


Transfer Duty

Levied on the value of any property acquired by any person and payable within 6 months of the acquisition date. Acquisitions Exempt from Transfer Duty include: Property by the state, local authority, educational institution of a public character;


Frequently Asked Questions

What is Gross Income?

What is the difference between tax avoidance and tax evasion?

What is Value-Added Tax?

Who is classified as a taxpayer representative?

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Companies & Close Corporations

Companies and Close Corporations are required to pay tax on the profit earned and submit annual financial statements. Companies that do not trade in mining activities are taxed at a flat rate of 32%. Companies are required to make two provisional pay


Mining Companies

Income derived from mining operations is taxed in terms of the same rules as all the other taxpayers except in respect of capital expenditure (exploration and development expenditure) and the tax rates. The capital expenditure of a mine to be deducte


Trusts

Section 1 of the Income Tax Act specifically includes trusts in the definition of a "person". Trusts are therefore taxed according to the same tax rates and principles that apply to individuals. By way of arrangement the founder of


State-owned Enterprises

As per Section 16(1)(a) of the Income Tax ACt, revenues earned by the Government of Namibia or any other state shall be exempt from tax. However, not all state-owned enterprises are exempt from paying tax. Specific income tax principles should be co


Joint Venture & Partnership

A joint venture involves two or more companies joining together in business, whereas in partnership, it is individuals who join together for a combined venture. For the purpose of the Income Tax Act a partnership is not recognised as a "pers