The Namibian tax system is based on a source. In terms of the source basis of taxes, any amount of cash or otherwise received by or accruing to any person from a source within or deemed to be within Namibia, unless the receipt is of a capital kind, is liable to tax in Namibia.
Non-residents are only taxed on income earned in Namibia, regardless of where it comes from. The place where the services are given, regardless of the individual making the payment or the location from which the payment is made, is the source of employment income.
The tax rates that apply to people are determined using a sliding system.
The lowest rate is zero percent, and the highest rate is 37 percent.
After the draft bill is circulated for comments and approved by Parliament, any changes in tax rates are reported in the annual budget address. The Namibian fiscal year runs from March 1 to February 28 of the following year. The Namibia Revenue Agency (NamRA) is the country’s tax authority.
Namibia’s official currency is the Namibia Dollar (NAD).
Withholding Tax
When dividends and royalties (or similar payments) are declared/distributed to non-Namibian residents, or when Namibian residents use certain services offered by non-residents, withholding taxes (WHTs) apply.
Any person (other than a Namibian corporation) who receives gross interest from a registered banking institution or unit trust scheme registered in Namibia is liable to a 10% WHT. All interest paid by a Namibian resident to a non-resident is subject to a new 10% WHT on interest.
Income tax
Personal income tax is imposed on an individual’s total taxable income, and all individuals are taxed at progressive marginal rates across a range of income levels. The tax year begins on March 1 and ends on February 28.
| Taxable amount | Tax |
| Where the taxable amount does not exceed N$50 000 | 0% |
| between N$50 001 and N$100 000 | 18% of the amount by which the taxable amount exceeds N$50 000 |
| between N$100 001 and N$300 000 | N$9 000 + 25% of the amount by which the taxable amount exceeds N$100 000 |
| between N$300 001 and N$500 000 | N$59 000 + 28% of the amount by which the taxable amount exceeds N$300 000 |
| between N$500 001 and N$800, 000 | N$115 000 + 30% of the amount by which the taxable amount exceeds N$500 000. |
| between N$800 001 and N$1, 500 000 | N$205 000 + 32% of the amount by which the taxable amount exceeds N$800 000 |
| over N$1 500 000 | N$429 000 + 37% of the amount by which the taxable amount exceeds N$1 500 000 |
Typically, the employer withholds income tax.
Once a year, individuals are required to submit a tax return form to the Receiver of Revenue. Individual taxpayers are divided into three categories, each of which submits a distinct colored tax return. Brown, blue, and yellow varieties are available.
Value Added Tax (VAT)
On the supply of most products and services, as well as the importation of items, VAT is charged at a standard rate of 15%.
A person who runs a business with an annual taxable turnover of more than N$500,000 must apply for VAT registration.
A person may choose to register for VAT if their annual taxable turnover is less than N$500,000 but more than N$200,000, however, they will not be registered if the Commissioner determines that they:
- have no fixed residence or place of business; and
- have no established residence or place of business.
- Has previously been registered but failed to comply with the Act; and
- has previously failed to comply with the Income Tax Act.
Non-Resident Shareholders Tax (NRST)
Dividends declared by a firm to a shareholder who is not a Namibian resident are subject to NRST. The business declaring the dividend or the agent in Namibia receiving the dividend on behalf of a non-resident must pay the tax.
If the beneficial shareholder company has at least 25% of the capital, the NRST rate is 10%, and in all other circumstances, the rate is 20%.
All of these taxes must be paid and tax returns must be filed within 20 days of the end of the month in which the amount was withheld.
