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.

Capital Expenditure

The capital expenditure of a mine to be deducted from income may consist of exploration and or development expenditure.

Exploration 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.

Development Expenditure 

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.

Tax Rates

Operating Expenditure of a Mine

Operating expenditure not classified as exploration or development is deductible as general expenses incurred in the production of income.

Recoupment

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.

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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