www pwc com na Namibia Tax Reference and Rate card

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Source basis of Income Tax, Normal tax is levied on taxable income of companies trusts and individuals from. sources within or deemed to be within Namibia,Individual Income Tax. All individuals incl deceased estates and trusts other than companies. Rates of tax from years of assessment ending,Taxable Income 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. 800 000 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 0010. Employees fringe benefits, Fringe benefits are taxable The taxable value of fringe benefits is determined in. terms of a schedule to the income tax Act,Housing loans and mortgage subsidies. Housing loans provided to employees at a subsidised rate are taxable to the extent. that the interest rate payable by the employee is less than 12 per annum p a. The taxable value of housing benefits comprising free or subsidised housing is. determined with reference to the location and size of the housing as indicated in. the following table,1 2 3 4 5 6 7 8 8,room room room room room room room room room. Windhoek 500 750 1 000 1 400 1 800 2 200 2 800 3 400 4 000. Walvis Bay 350 550 750 1 000 1 300 1 700 2 100 2 550 3 000. Large Towns 250 375 500 700 900 1 100 1 400 1 700 2 000. Small Towns 125 175 250 300 450 550 700 850 1 000, The taxable value of housing benefits granted in terms of housing schemes. approved by Inland Revenue is reduced by one third thereof the reduction. increases based on a formula for remuneration below N 30 000 p a. Meals Taxable portion, Meals supplied at employee residence N 100 per family member older than 6 years.
Meals supplied at business premises Not taxable,Loans other than housing loans. The taxable value of interest free or subsidised loans that are not utilised for further. study by the employee or exceed N 3 000 p a is 12 p a of the loan amount less. interest actually paid on the loan,Motor vehicles, Taxable amount for the right of private use of employer provided vehicles. All costs borne by the employer 1 5 p m of the cost price of the vehicle. Employee bears all the fuel costs and the 1 4 p m of the cost price of the vehicle. employer all other costs,Interest income, Exempt interest income earned by individuals and trusts from. Deposits with Nampost Savings Bank, Stock or securities including Treasury Bills issued by the Government of Namibia or any. regional council or local authority in Namibia also available to companies not carrying on. business in Namibia,Withholding tax, 10 on interest received from Namibian banks and unit trusts paid to any person other than a.
Namibian company,Retirement death and withdrawal, Contribution to approved pension 2015 2016 2016 2017. provident retirement annuity RA N N,and educational policies. Deduction allowed in total 40 000 40 000,Medical aid. Contributions to medical aid funds and actual medical costs are not deductible by. employees for income tax purposes,Withdrawal benefits. Pension and Provident Lump sums not transferred to another approved pension. provident RA or preservation fund will be taxable at the greater of 18 or the. average tax rate, Retirement annuity No withdrawal benefits may be taken from RA funds before.
retirement age of 55 years, Educational policy The total amount must be utilised for post school educational. training purposes The amount not so used is taxed at the marginal rate of the. policyholder,Retirement benefits, Pension and RA funds The total lump sum is tax free but annuities or pensions. paid are taxable at the marginal rate of the member. Provident funds One third of the total benefit is exempt and the remainder is taxed. at the marginal rate of the member,Death benefits, Pension and RA funds The total lump sum is tax free but the annuities pensions. paid to dependants are taxable at the marginal rate The lump sum must however. be less than 50 of the entire death benefit The difference being paid as annuities. will be taxable Should the lump sum be 50 or more the entire lump sum will be. taxable at the marginal rate, Provident funds One third of the total benefit is exempt and the remainder is taxed. at the marginal rate of the beneficiary,Retrenchment benefits.
Pension and RA funds So much of the lump sum that is not funds transferred to. another approved pension provident RA or preservation fund will be taxable at. the average tax rate of the member,Gratuities and special payments. The first N 300 000 received due to superannuation ill health or other infirmity or. if the recipient is over the age of 55 years is exempt from tax Any balance received. over N 300 000 may be taxed in three equal instalments commencing in the year. of receipt,Social security, Social security is payable on a 50 50 contributions from employers and employees. The contributions are calculated at 0 9 of earnings with a minimum monthly. contribution of N 2 70 and a maximum monthly contribution of N 81 00 by each. Estate duty donations tax, There is no estate duty or donations tax in Namibia. Transfer duty,Natural persons Fixed property,Value of property N. 0 600 000 Nil,600 001 1 000 000 1 of value exceeding N 600 000.
1 000 001 2 000 000 N 4 000 plus 5 of value exceeding N 1 000 000. 2 000 000 and above N 54 000 plus 8 of value exceeding N 2 000 000. Other persons,Any value 12, Special rates are applicable to natural persons who acquire commercial farmland. through the Affirmative Action Loan Scheme,Stamp Duty. Natural persons,Value of property N,0 600 000 Exempt. 600 001 1 000 000 N 10 for every N 1 000 or part thereof. Other persons,Any value 1 2,Value Added Tax, Value added tax is payable on the taxable value of all goods sold or imported The. standard rate is 15 Direct exports of goods and services are zero rated A number. of other zero ratings and exemptions are also provided for A person company. individual trust and partnership carrying on a taxable activity with a turnover for. the past or future 12 month period in excess of N 500 000 must register for VAT. Company tax rates,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. Capital gains taxes,Sale of Mining Petroleum Licenses. Any sale donation expropriation cession grant or other alienation or transfer of. ownership of a licence or right shall be included in gross income The sale of shares. in a company for a licence or right to mine minerals in Namibia is included in gross. income and taxed accordingly,Movable assets and buildings. Machinery and movable assets, Wear and tear claims are deductible in equal instalments over three consecutive. tax years for the acquisition of vehicles aircraft seagoing craft machinery. implements utensils and articles used for purposes of trade. An initial allowance of 20 of the cost of erection may be claimed in the year that. the building is brought into use and a subsequent allowance of 4 for each of the. ensuing 20 years following on the year that the building was brought into use. Payments to non residents,Withholding Tax, Dividends paid to non residents companies 25 shareholding 10.
Dividends paid to non residents in all other cases 20. Interest paid to non residents 10,Royalties paid to non residents 10. Management technical admin consulting fees paid to non residents 10. Non residen directors fees and fees paid to foreign entertainers 25. Dividends received are exempt in the hands of corporates individuals and trusts. Dividends declared to foreign shareholders are however subject to NRST. Farmers are taxed in the same manner as other individuals or companies Farming. is a ring fenced trade unless carried on on a full time basis. Farmers Deduction of capital expenditure, Expenditure on motor vehicles and other movable assets used for farming purposes. is deductible in equal instalments over three consecutive years Expenditure. incurred on capital development is deductible in full but limited to the amount of. taxable farming income Any remaining capital development expenditure is carried. forward to the next year Deductions for the erection of domestic houses for a. farmer s employees may not exceed N 50 000 per employee. Registered manufacturers, Special tax incentives are available to manufacturers approved by the Minister of. Trade and Industry and registered as such with the Ministry of Finance. Export Processing Zone EPZ, New enterprises that export produce to countries outside the Southern African. Customs Union SACU can qualify for EPZ status The benefits of an EPZ enterprise. Relief from corporate income tax import duties VAT and stamp duties but. excluding tax on employees income and withholding tax on dividends. Training grants of 75 of training costs, Foreign currency bank accounts free of exchange control.
Any export of locally domestically manufactured goods excluding meat and fish. products qualifies for an abatement of 80 of taxable income directly related to. such exports Abatement does not apply to the export of imported manufactured. Customs and Excise, Customs duties are levied on certain goods imported into Namibia The rates are usually. calculated on an ad volarem basis Namibia applies the Harmonised System and is party to. the WTO Namibia is also a member of SACU Common external tariffs are applied on imports. from outside SACU Specific excise duties and the corresponding specific customs duties are. levied on the traditional excisable products such as fuel jewellery tobacco and liquor. Environmental duties, Environmental duties are payable on electric filament lamps tyres and on carbon. emissions of all vehicles excluding motorcycles Certain exemptions apply. Transfer pricing and thin capitalisation, Transfer pricing was introduced in May 2005 Cross border transactions with. connected persons must be entered into on an arm s length basis A taxpayer is. required to be in possession of transfer pricing documentation Financial assistance. by foreign investors to connected persons in Namibia should not be excessive in. relation to the fixed capital of the recipient else interest payable on loans will be. disallowed,Mining royalties, Royalties are levied in terms of the Prospecting and Mining Act as a percentage. of the market value of the minerals extracted by licence holders in the course of. finding or mining any mineral or group of minerals The rates are determined as. Group of minerals Royalty,Precious metals Base and rare metals 3.
Semi precious stones Industrial metals Non Nuclear fuel minerals 2. Nuclear fuel minerals 3,Oil and Gas 5,Tax treaties. Double tax agreements may reduce withholding taxes Namibia has double tax. agreements with Botswana France Germany India Malaysia Mauritius Romania. Russia South Africa Sweden and the United Kingdom,Tax compliance. Income tax returns and tax payments due dates,Individuals. Individuals Employees 30 June each year, 1st Provisional On before 30 August n a to farmers At least 40 of the total. actual taxable income to be declared and paid, 2nd Provisional On before 28 February At least 80 of the total actual taxable.
income should be declared and paid, Business individual and Within 7 months after the tax year end 30 September each year. or farmer other than,companies or salaried, Companies Within 7 months after financial year end. Income tax 1st Within 6 months from commencement of the company s financial. provisional year 40 of the total actual taxable income to be declared and paid. Income Tax 2nd On before the last day of the company s financial year end At least. Provisional 80 of the total actual taxable income should be declared and paid. Employers PAYE The employer should submit within 20 days following the month. Returns during which PAYE is required to be withheld. Employers PAYE Annual PAYE reconciliation should be submitted within 30 days from. reconciliation return the tax year end 30 March each year. Withholding Tax, Dividends Within 20 days following the month during which accrual or pay. ment took place, Royalties Within 20 days following the month during which the royalty. accrued or was paid, Interest Within 20 days following the month during which the interest.
becomes due and payable, Services Within 20 days following the month during which the liability was. incurred to pay management technical administrative or. entertainment fees,Value Added Tax, VAT return 25th of the month following the end of the two month tax period. Import VAT return 20th of the month following the end of the previous month. Import VAT on services 30 days from date of import of services. Customs Excise Payment at time of clearing per customs assessment notice excl fuel. import levy payment,Social Security, Monthly contributions 30 days after the end of the month. Tax Area Reason Penalty Interest,Persons Companies. 1st Provisional tax Late submission N 100 per day None. www pwc com na Namibia Tax Reference and Rate card June 2017 Source basis of Income Tax Normal tax is levied on taxable income of companies trusts and individuals from sources within or deemed to be within Namibia Individual Income Tax All individuals incl deceased estates and trusts other than companies Taxable Income N Rates of tax from years of assessment ending 2017 18 N 0 50

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