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.

Taxation on Farming Activities

Income received from selling farm animals and game, leasing land for grazing and agricultural products is taxable. A farmer will also be taxed on the livestock or produce that has been donated or consumed. "Each farmer is required to indicate the number of farm animals at the beginning (01 March) and at the end of the year (28 Feb) in the income tax return"

Individual Income Tax

All individuals (incl. deceased estates and trusts) other than companies.

TAXABLE INCOME (N$) RATES OF TAX FROM YEARS OF ASSESSMENT ENDING 2018/19 (N$)
0 - 50 000 Not taxable
50 001 - 100 000 18% for each N$ above 50 000
100 001 - 300 000 9 000 + 25% for each N$ above 100 000
300 001 - 500 000 59 000 + 28% for each N$ above 300 000
500 001 - 800 000 115 000 + 30% for each N$ above 500 000
800 001 - 1 500 000 205 000 + 32% for each N$ above 800 000
Above 1 500 000 429 000 + 37% for each N$ above 1 500 000

Taxation of a Business Income

For tax purposes, all income earned from any business activities carried out in Namibia is taxable. This income is regarded as ordinary income for tax purposes. "If you are conducting any business in Namibia, being in a formal or informal set up, know that the income you receive is subject to tax."

Companies

COMPANY TAX RATES 2018 / 2019
Corporate Tax Rate 32 %
Branch Income Tax 32 %
Diamond Mining Companies 55 %
Mining Companies (other than diamond mining companies) 37.5%
Long term insurance companies (40% of gross investment income taxed at 32%) 12.8%
Petroleum Companies (exploration - ,development - or production operations) 35%

Related Tax Categories

I earn a monthly salary

Any person who earns a salary of more than N$ 50,000 per annum should register as a taxpayer and submit the proof of registration to their employer.  An amount contributed to an approved pension or provident fund as a con


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


Transfer Pricing

Transfer pricing refers to the setting, analysis, documentation and adjustment of cross border charges between related parties for goods, services, or use of property (including intangible property). It should be noted that Transfer Pricing is a high


I am a farmer

Income received from selling farm animals and game, leasing land for grazing and agricultural products is taxable. A farmer will also be taxed on the livestock or produce that has been donated or consumed. Each farmer is required to indicate the num


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


I own a one-man business

For tax purposes, all income earned from any business activities carried out in Namibia is taxable. This income is regarded as ordinary income for tax purposes. Hair Salon:  Whether the salon is operated from city centre, town, informal m


I am a provisional Taxpayer

Any person earning taxable income in excess of N$ 50,000 per annum that is not received in the form of remuneration is required to register as a provisional taxpayer. Any directors of a private company (including members of close corporations) are a


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


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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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;


Tax Types

Tax, from the Latin taxo, is a compulsory financial charge or some other type of ley imposed upon a taxpayer (an individual or legal entity) by Namibia. This section looks at the various tax types relevant to Namibia: Income Tax Income tax is a ta