Namibia legal and accounting and tax considerations in 2024

1. The standard corporate tax rate in Namibia is levied at 33%, but manufacturing companies benefit of a reduced rate of 18%. One provisional tax payment must be made in June and full corporate tax must be paid by December;
2. The standard VAT levied on supplies of goods and services is 15%. Imported products and services are however taxed at 16.5%, while exports are VAT exempt. All companies with turnover over US$18,000 must register for a VAT number;
3. All companies are allowed to carry forward their losses indefinitely for set off against future taxable income;
4. Dividends distributed to a nonresident owner are subject to a standard withholding tax rate of 20%. Such payments however benefits from reduced rates of i) 10% if the beneficiary owns more than 25% of the company’s share or ii) up to 5% if the beneficiary resides in a country signatory of a DTA agreement with Namibia;
5. Earnings remitted by a branch to its foreign parent company are subject to standard corporate tax. No additional branch tax is levied;
6. Capital gains taxes are subject to the standard corporate tax of 33%. No additional capital gains tax is levied in Namibia;
7. Tax losses may be carried forward indefinitely or offset against future taxable income provided the entity does not cease to trade;
8. Employers are required to make social security contributions at a rate of 0.9% of the employees basic salary income;
9. Namibia has signed double tax treaties on withholding tax rates with 11 countries including France, Germany, Botswana, South Africa, Sweden and the United Kingdom;
10. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.