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 considered.

Income Tax Consideration

State-owned enterprises are taxed in the same manner as other companies, unless its establishment act or specific other legislation exempts the enterprise from tax. The following items are generally seen in the public sector and their tax treatment is set out below:

Government grants classification

Government grants received from the Namibian Government are either capital in nature or revenue in nature. It must be determined carefully whether a grant is capital or revenue in nature.

Government grants specifically included in gross income

Grants received in respect of soil conservation works or farming capital expenditure specified in Paragraph 10(1)(a) to (j) are required to be included in gross income.

Exempt Government Grants

Any amounts received by ecclesiastical, charitable and educational institutions of a public character (whether or not supported wholly or partly by grants from the public revenue) will be exempt from income tax.

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?

What is the difference between tax avoidance and tax evasion?

Who is classified as a taxpayer representative?

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Companies & Close Corporations

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Mining Companies

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Trusts

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