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  • Individual for Salaried Person/Pension
    • Any individual that earns a salary
    • Any pensioner that earn pension income
  • Individual for Farmer & Business
    • Any Individual who earns a salary/Pension and also conducts Farming & Business
    • Any individual who is a fulltime Farmer & Business
  • Individual for Farmer
    • Any Individual who earns a salary/Pension and also conducts farming
    • Any individual who is a fulltime farmer
  • Individual for Business
    • Any Individual who earns a Salary/Pension and also conducts business
    • Any individual who is a fulltime Business (sole traders)
  • Other Individual (Provisional)
    • Any individual who earn a salary/Pension plus extra income larger than 5000
    • Any individual who earn a salary but no PAYE is deducted by the employer
  • Individual (Below Threshold)
    • Any individual who earn any income which is below the taxable threshold
  • Diplomat
    • Any Foreign individual working for an Embassy in Namibia

Ind Test

  • Companies or Close Corporations for Non-Mining
    • All legal entities registered as per BIPA regulations except for entities registered exclusively for mining.
  • Companies or Close Corporations for Diamond Mining
    • All legal entities registered as per BIPA regulations exclusively for the exploration and mining of diamond minerals
  • Companies or Close Corporations for Other Mining
    • All legal entities registered as per BIPA regulations for the exploration and mining of minerals other than diamonds
  • Companies or Close Corporations for Manufacturer
    • All legal entities registered as per BIPA regulations for manufacturing activities.
  • Foundation
    • Any organisation classified as a foundation.
    • A foundation (also a charitable foundation) is a legal category of non-profit organisation that will typically either donate funds and support to other organisations, or provide the source of funding for its own charitable purposes. Foundations incorporate private foundations and public foundations. This type of non-profit organization differs from a private foundation which is typically endowed by an individual or family.
  • State Owned Enterprises
    • Any public enterprise or parastatal established by means of an act.
  • Technical Assistance Agreement
    • Any Technical Assistance Agreement (e.g. GIZ, Millennium Challenge Account – Namibia)
  • Diplomatic/Consular Missions
    • Any Embassy (operating from a chancery) or Consulate in Namibia
  • Public International Organisation
    • Any Public International Organization that in Namibia (e.g. World Health Organisation (WHO), International Monetary Fund (IMF), UNESCO)
  • Partnership
    • Any partnership between two or more parties for the purpose of operating a business
  • Joint Venture
    • Any Joint Venture in Namibia (A cooperative enterprise entered into by two or more business entities for the purpose of a specific project or other business activity) .
  • Non-Profit Organisation
    • Any Non-Profit Organisation in Namibia

  • Any trust registered under the provisions of the Trust Moneys Protection Act 34 of 1934 rules administered by the Master of the High Court.

  • Municipalities
    • Any municipality (e.g. Municipality of Swakopmund)
  • Government Offices
    • Any government office (e.g. Office of the Prime Minister)
  • Government Ministries
    • Any government ministry (e.g. Ministry of Finance)
  • Government Agencies
    • Any government agency (e.g. National Planning Commission)
  • Town Councils
    • Any town council (e.g. Ongwediva Town Council)
  • Village Councils
    • Any village council (e.g. Uis Village Council)
  • Regional Councils
    • Any regional council (e.g. Otjozondjupa Regional Council)

  • ♦ Income Tax

    TAXATION OF 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."

    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"

  • ♦ Employee Tax

    An employer is required to deduct tax from the salary of an employee in accordance with the tax rates and pay over such an amount to Inland Revenue Department.

    An employer should issue an employee with a tax certificate (PAYE 5 certificate) indicating the total remuneration and the amount of employees’ tax deducted. The certificate should be delivered:

    1) Within 30 days after end of February, if the employer has not ceased to be an employer to such an employee;
    2) Within 14 days if the employer has ceased to be an employer in relation to such an employee; and
    3) Within 7 days if the employer has ceased to be an employer.

  • ♦ 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.

    A person may choose to register for VAT if the annual taxable turnover does not exceed N$500,000 but exceeds N$200,000 but will not be registered if the Commissioner is satisfied that such a person:

    1) Has no fixed residence or place of business;
    2) Does not keep proper accounting records;
    3) Has previously been registered but failed to comply with the Act; and
    4) Has failed to comply with the Income Tax Act.

    "Every registered person who is liable for the payment of value added tax is required to maintain accounting records in the English language at the place of business in Namibia"

    Administrative Requirements for VAT registration
    An application for VAT registration should be accompanied by:
    1. Proof of Banking Details
    2. Fitness Certificate
    3. Founding Statement
    4. Indication of expected turn over for 12  months.

    "A registered person must submit a VAT return on or before 25th day of the month following the end of the period"

  • ♦ Value Added Tax Import Account

    As per Value Added Tax amendment Act 12 of 2015, Section 1 states:
    (a) by the substitution for subsection (1) of the following subsection:
    “(1) Where tax is payable on an import of goods –
    (a) in the case of goods required to be entered for home consumption in terms of the Customs and Excise Act, the importer shall, upon such entry, furnish the Commissioner with an import declaration and pay the tax due in respect of that import in accordance with subsection (5) or any arrangements on terms as prescribed by the Commissioner by notice made there under; or
    (b) in the case of goods imported from Botswana, Lesotho, South Africa or Swaziland, the importer shall, upon such import, furnish the Commissioner with an import declaration and pay the tax due in respect of that import in accordance with [that] subsection (5) or [the said] arrangements made under that subsection; or
    (c) in the case where goods, in circumstance contemplated in paragraph (a) or (b) are imported on a VAT import account arranged on condition that security may be requested before the importation of goods on such account and on such additional conditions as may be prescribed by the Commissioner by notice for the granting or refusal of such account as contemplated in subsection (5)(a)(ii)(aa) or (bb), the importer shall, not later than the twentieth day of the month following the month of import, pay the tax due in respect of the import of those goods: Provided that where during any particular month no goods were imported on a VAT import account, the importer shall, not later than the twentieth day of the month following that month, furnish the Commissioner with an import declaration reflecting that no goods were imported during that month; or
    (d) in any other case, the importer shall, at the time of the import, furnish the Commissioner with an import declaration and pay the tax due in respect of that import in accordance with subsection (5)(a)(i).”;


  • ♦ VAT Import on Services

    VAT is payable on any imported service by the person importing the service into Namibia after 27 November 2000.
    An imported service is a supply of a service by a non-resident person to a non-registered Namibian resident, or one who makes exempt supplies. If a registered person imports a service to make taxable supplies, this is regarded as an exempt import.

    A service is imported into Namibia the earlier of:
    • An invoice being issued by the service provider; or
    • At the time of any payment made to the service provider.

    The amount paid to the service provider must be used to calculate the VAT payable on the imported service. The standard rate of 15% must be applied to determine the amount payable.


  • WITHHOLDING TAX


  • ♦ Withholding Tax on Interest

    A person who pays interest to a non-resident is required to withhold tax at a rate of 10% and pay it over to Inland Revenue Department.
    The Interest to non-residents is deemed to be paid on the earlier of the actual payment or the date the interest becomes payable.


    "Due Date for payment of Withholding tax on interest and submission of tax return is within 20 days after the end of the month during which the amount was withheld"

    Penalties and Interest
    A penalty of 10% and interest of 20% of the amount of withholding tax will be levied on the late payment of tax for each month or part of the month. The penalty and interest are limited to the amount of unpaid tax.

  • ♦ Withholding Tax on Services

    A resident person liable for the payment of management fee, consultancy fee, entertainment fee etc. to a non-resident is required to withhold tax at a rate of 10%.


  • ♦ Withholding Tax on Royalties

    A person who pays an amount for the use of any patent, trade mark, and motion picture film including the right to use industrial, commercial or scientific equipment to a person not being ordinarily resident in Namibia is required to withhold tax on royalties at a rate of 10%.


  • ♦ Non Resident Shareholders Tax (NRST)

    NRST is paid on dividends declared by a company to a shareholder who is not a Namibian resident. The tax is payable by the company declaring the dividend or the agent in Namibia who is receiving the dividend on behalf of a non-resident.

    NRST rate is 10% if the beneficial shareholding company holds at least 25% of the capital and 20% of the amount in all other cases.
    Due Date for payment of all these taxes and submission of tax return is within 20 days after the end of the month during which the amount was withheld.

  • Stamp Duty

    Legal Instruments subject to stamp duty include:

    • Antenuptial or postnuptial contract;
    • High purchase agreement;
    • Lease agreement;
    • Mortgage bond;
    • Power of Attorney;
    For a full list see schedule 1 to the Stamp duty Act
    Exempt instruments include:
    • If the duty would be payable by the Government, regional council, municipal council or town council;
    • Instruments in connection with criminal proceedings;
    • Instruments on behalf of charitable or educational institutions of a public character which is exempt from income tax.
    For a full list see section 4 of the Stamp Duty Act

    Applicable Stamp duty rates on transfer deed:

    Exempt, from N$0 – N$600,000 and from above N$600,000 an amount of N$10 for every N$1,000 or part thereof is payable.

    Stamp duty is payable on a lease agreement whereby immovable property is let, whether with or without other assets, provided that no transfer duty is chargeable in respect or such lease agreement.
     

  • 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;
    • Property by a surviving spouse from the estate of deceased spouse;
    • A surviving or divorced spouse who acquires the sole ownership of the property.
      For a full list of exemptions see section 9 of the Transfer Duty Act.

    A penalty of 10% is payable on the late payment of the transfer duty.

    The value on which transfer duty is payable is the amount payable for such a property and if no amount is payable the declared value of the property will be regarded as the value of the property