Tax laws Namibia
Namibia's tax system comprises various taxes, including personal income tax, value-added tax (VAT), and corporate taxes. Below is an overview of the key tax categories:
1. Personal Income Tax:
Personal income tax in Namibia is progressive, with rates applied to different income brackets. As of the 2016–2018 tax years, the rates were structured as follows:
- Up to N$50,000: 0%
- N$50,001 to N$100,000: 18% on the amount exceeding N$50,000
- N$100,001 to N$300,000: N$9,000 plus 25% on the amount exceeding N$100,000
- N$300,001 to N$500,000: N$59,000 plus 28% on the amount exceeding N$300,000
- N$500,001 to N$800,000: N$115,000 plus 30% on the amount exceeding N$500,000
- N$800,001 to N$1,500,000: N$205,000 plus 32% on the amount exceeding N$800,000
- Above N$1,500,000: N$429,000 plus 37% on the amount exceeding N$1,500,000
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2. Value-Added Tax (VAT):
Namibia imposes a 15% VAT on most goods and services. However, basic commodities such as bread are exempted from VAT to reduce the tax burden on essential items. citeturn0search10
3. Corporate Income Tax:
Corporate income tax rates vary depending on the type of company and its activities. For instance, public companies listed on the Namibian Stock Exchange may be subject to different rates and reliefs compared to private companies. It's essential for businesses to consult with tax professionals or the Namibian tax authorities to determine the applicable rates and any available incentives.
4. Other Taxes:
Withholding Taxes: Namibia imposes withholding taxes on various payments, including dividends, interest, and royalties. The rates and applicability can vary based on the nature of the payment and any existing tax treaties.
Stamp Duties and Transfer Taxes: Certain transactions, such as the transfer of property, may be subject to stamp duties or transfer taxes. The rates and regulations governing these taxes can be complex and may change over time.
Recent Developments:
In the 2024/25 Financial Year Budget, the Namibian government announced adjustments to personal income tax brackets. The minimum taxable income was increased from N$50,000 to N$100,000, and tax rates for higher income brackets were adjusted to reduce the overall tax burden on individuals. These changes aim to provide tax relief and stimulate economic activity.
Note: Tax laws and regulations are subject to change. For the most current and detailed information, it is advisable to consult the Namibian Ministry of Finance or seek professional tax advice.
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