Fees charged by nonresident entertainers, including artists and sportspersons and other nonresident persons receiving payments with respect to such types of activities, as well as directors’ fees paid to nonresidents, are subject to withholding tax at a 25% rate.
Investment income. Interest and dividends from building societies received by a Namibian resident from anywhere in the world are deemed to be from Namibian sources and are taxable with other income at the rates set forth in Rates. An exception is made if the investment originates outside Namibia or is made for a business carried on outside Namibia and if the interest is taxed outside Namibia.
Interest earned by individuals from local commercial banks is subject to a 10% withholding tax. Interest income that is subject to this withholding tax is exempt from normal income tax.
The following types of income, among others, are exempt from tax:
• Interest from stock or securities issued by the government of Namibia or any local authority
• Interest from deposits in the Namibia Post Office Savings Bank
• Worldwide dividends accrued on ordinary and preference shares
The interest portion of distributions received from non-Namibian unit trusts is taxable in the hands of unit holders. Individuals are subject to tax on such portion at the marginal tax rate.
Namibian unit trusts must withhold tax on the interest portion of distributions to all investors other than Namibian companies at a rate of 10% on the interest portion of distributions to individuals and non-Namibian companies.
Rental income is aggregated with other income and taxed at the rates set forth in Rates
In the absence of an applicable double tax treaty, nonresidents are subject to the following final withholding taxes:
• 20% nonresident shareholder’s tax on dividends declared
• 10% tax on royalties, including payments for the use of or the right to use commercial, industrial or scientific equipment, paid to nonresidents
• 10% tax on consulting fees, management fees, administration fees, technical fees or fees of a similar nature
• 25% on entertainment fees or directors’ fees
• 10% on interest payments from Namibian residents
Directors’ fees. Namibian-source directors’ fees are subject to tax with other income at the rates set forth in Rates. The source of the directors’ fees is the location of the head office of the company of which the taxpayer is a director. This rule does not apply to remuneration for special services, which may be sourced where the services are rendered.
Directors’ fees paid by a Namibian company to a nonresident are subject to a withholding tax of 25%. The withholding tax is a final tax, and the directors’ fee income is not part of the recipient’s Namibian taxable income.
Value of land
Exceeding Not exceeding NAD NAD Rate
0 1,500,000
No duty payable 1,500,000 2,500,000 1% of the amount in excess of NAD1,500,000
2,500,000 —
NAD10,000 + 3% of the amount exceeding NAD2,500,000
The following table sets out the rates payable by individuals with respect to other land.
Value of land
Exceeding Not exceeding NAD NAD Rate
0 1,100,000
No duty payable 1,100,000 1,580,000 1% of the amount in excess of NAD1,100,000
1,580,000 3,150,000
3,150,000 12,100,000
12,100,000 —
NAD4,800 + 5% of the amount exceeding NAD1,580,000
NAD83,300 + 8% of the amount exceeding NAD3,150,000
NAD799,300 + 11% of the amount exceeding NAD12,100,000
The transfer duty payable by any person other than a natural person including a trust, when acquiring land is 12% of the value of the property acquired.
C. Social security
Employees under 65 years of age and all employers are subject to social security contributions. Employees must contribute 0.9% of monthly compensation, subject to a minimum of NAD2.70 and a maximum of NAD81 per month. Employers must contribute an amount equal to the employee’s contribution. Self-employed individuals must contribute 1.8% of monthly compensation, limited to NAD162 per month.
In addition, a contribution to the Workers’ Compensation Fund must be made for each employee earning less than NAD81,300 a year.
Namibia is not a party to any totalization agreement.
D. Tax filing and payment procedures
The tax year in Namibia runs from 1 March to the end of the following February. In general, individuals must file annual tax returns by 30 June, unless an extension is granted. Husbands and wives are taxed separately in Namibia.
The Pay-As-You-Earn (PAYE) wage withholding tax system operates in Namibia. Individuals who earn only remuneration subject to PAYE and who are employed by the same employer throughout
Traders and street vendors, voluntary workers, and persons hired and remunerated in their jurisdictions but performing work in Namibia must obtain work visas.
On application, business visas may be granted for multiple reentry. However, they must be obtained for each entry into the country for business purposes if a multiple re-entry visa was not originally granted.
The documentation required for a business visa consists of a copy of the passport (showing date of issuance, date of expiration and passport number), a completed visa form and a motivation letter (references from the employer) on a company’s letterhead.
The visa fees increase from NAD1,200 to NAD1,600 per person as of 1 April 2024 for travelers from non-Africa Union (AU) Member States. Travelers from AU Member States who qualify for a visa on arrival pay NAD1,200 per person.
Work visas and permits. Work visas and permits are discussed in Section G.
G. Work visas (and/or permits) and self-employment
Work visas are issued to persons who intend to work for up to six months in Namibia. Work visas can be issued for a three-month period and can be renewed for an additional three months.
The visa fees increase from NAD1,200 to NAD1,600 per person as of 1 April 2024 for travelers from non-AU Member States. Travelers from AU Member States who qualify for a visa on arrival pay NAD1,200 per person.
The documentation required for a work visa is the same as the documentation required for a business visa (see Business visas), except for the additional requirement of a police clearance certificate for a work visa.
Foreign nationals may accept employment in Namibia only if they enter the country with work permits and with temporary or permanent residence permits (see Section F).
Work permits are granted to foreign nationals seeking employment in Namibia and are valid for a duration determined by the Ministry of Home Affairs. The fee for a 12-month work permit is NAD2,500, while a 24-month work permit is NAD5,200. A multiple-entry visa permits an individual to enter and exit Namibia at will. Applicants must have valid work permits before commencing employment.
Work permits must be renewed three months before their expiration dates. They are valid only for the employment detailed in the application and are not transferable if the holder changes employment. A Change of Conditions permit must be obtained in these circumstances.
The following items, certain of which are standard forms obtainable from the Ministry of Home Affairs, must be submitted to acquire a temporary work permit:
• An application for a temporary work permit completed by the applicant
• Application for visa (for purpose of multiple re-entry)