Taxation in Namibia
This is an overview of taxes charged to individuals and companies in Namibia.
| Taxation |
|---|
 |
| An aspect of fiscal policy |
Income Tax
Personal income tax is applicable to total taxable income of an Individual and all individuals are taxed at progressive marginal rates over a series of income brackets. The tax year runs from 1 March to 28 February.
Tax rates for the 2010/2011 to 2012/2013 tax years were as follows:[1]
| Taxable amount | Rates of tax |
|---|---|
| Where the taxable amount does not exceed N$ 40 000 | 0% |
| between N$ 40 001 and N$ 80 000 | 27% of the amount by which the taxable amount exceeds N$ 40 000 |
| between N$ 80 001 and N$ 200 000 | N$ 10 800 + 32% of the amount by which the taxable amount exceeds N$ 80 000 |
| between N$ 200 001 and N$ 750 000 | N$ 49200 + 34% of the amount by which the taxable amount exceeds N$ 200 000 |
| over N$ 750 000 | N$ 236 200 + 37% of the amount by which the taxable amount exceeds N$ 750 000 |
Tax rates proposed for the 2016/2018
tax year are as follows:[2]
| Taxable amount | Rates of 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 |
Income tax is typically withheld by the employer.
Individuals are responsible for submitting a tax return form to the Receiver of Revenue once a year. Individual taxpayers are categorised into three groups each submitting a different colour tax return. There are brown, blue and yellow forms. [3]
Value Added Tax
A 15% Value added tax (VAT) is applicable to almost every commodity. Basic commodities like sugar, bread etc. are exempted from VAT.[4]
References
- PAYE12 Volume 18 published by The Ministry of Finance in Namibia
- PWC Namibia 2013 Tax Reference and Rate Card
- http://www.namtax.com/what-colour-tax-reform-do-i-need-blue-brown-or-yellow
- PWC Namibia 2013 Tax Reference and Rate Card