Expatriate tax ebook - Namibia

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes

Capital gains tax
There is no capital gains tax in Namibia.

Inheritance, estate & gift taxes
There is no estate duty or donations tax in Namibia.

Investment income
The expatriate's interest income earned in Namibia will be taxed in Namibia. Dividends received are generally tax free in Namibia. All interest earned on investments held abroad by the expatriate will not be taxed in Namibia, except where the capital on which the interest is earned is of a Namibian source.

Local taxes
There are no local taxes applicable to an individual in Namibia, but there may be a requirement to settle council charges for water, electricity and refuse removal.

Real estate tax
Real estate tax only applies where a property is purchased. In that instance a transfer duty and stamp duty is payable on the purchase consideration.

The transfer duty rate which applies to transactions exceeding N$ 400, 000 is calculated at N$ 11 000 plus 8% of the amount exceeding the above amount.

Stamp duty is calculated at 1% of the total purchase consideration.

Social security taxes
Where services are rendered in Namibia, generally a charge to Namibian Social Security will arise. Where the income earned exceeds N$ 6 000 per month, the charge is limited to N$ 54 per month, payable by the employee. The employer pays an identical monthly amount.

Stock options
The value of share options granted are generally taxed in Namibia at the time the option is exercised by the employee. The taxable benefit derived by the employee will be the market value of the option at the time it is exercised less the amount payable by the employee.

Wealth tax
There is no wealth tax in Namibia.

Other specific taxes

Not applicable

Income Tax Rates

Namibia taxes income earned by an individual on a sliding scale with the first N$ 40 000 earned per annum being tax free, thereafter the rates start at 27% and increasing to 37% on all income earned in excess of N$ 750 000 per annum.

Information about Namibia:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities