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 deducted from income may consist of exploration and or development expenditure.
Consists of all expenditure, incurred for exploration operations. Exploration expenditure is carried forward to the year in which a mine commences production for the first time and is deducted in that year.
Consists of expenditure incurred for the development of the mine. Development expenditure incurred before the commencement of production of the mine is accumulated. The accumulated development expenditure is written off in three equal installments over three years, commencing in the year of production.
"mining operations" and "mining" include every method or process by which any mineral (excluding petroleum) is won from the soil or from any substance or constituent thereof.
Operating expenditure not classified as exploration or development is deductible as general expenses incurred in the production of income.
Any amount received from a disposal of an asset must be included in the income. Where the asset disposed of is sold of for an amount less than the fair market value of the asset, the asset must be valued at market value for the purposes of recoupment.
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
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
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.
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 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
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;
What is Gross Income?
What is Value-Added Tax?
Who is classified as a taxpayer representative?
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
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
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
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
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 th