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 payments and must submit two provisional tax returns, the first one within 6 months after the start of the financial year and a second one at end of the financial.

A company carrying on business in Namibia is required to appoint a Public officer to represent it for its tax affairs.

Deductable Expenses

  1. Expenditure ( excluding capital expenditure) that are incurred to produce income;
  2. Expenditure incurred on repairs made to the place of business;
  3. One third (for three years) of the cost of capital expenditure such as vehicle and machinery, but no deduction will be allowed if the item is sold; and
  4. An allowance of 20% of the cost of erecting a building is deductible in the year the building was brought into use, and 4% for each of the following 20 years.

For a full list of general deductions, see section 17 of the Income Tax Act.

Expenditure not subject to deduction

Expenditure that is not allowed as a deduction from income includes:

  1. Domestic or private expenses including repair of house;
  2. Expenses not relating to the production of income;
  3. Amount paid in respect of land tax; and
  4. Loss or expense which is recoverable from an insurance contract.

For a full list of expenses not allowed, see section 24 of the Income Tax Act.

Companies paying dividends to non-resident shareholders or paying interest to non-residents or paying royalties must withhold tax on such amounts.

Tax Submission Due Date

A Company must submit a self-assessment return of income: Company and Close Corporation within 7 months of the company’s year-end.

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 Value-Added Tax?

Who is classified as a taxpayer representative?

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