How Much Is Tax In Namibia

What is Tax?

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.

How Much Is Tax In Namibia?

Personal Income Tax Rate 37.00 percent
Corporate Tax Rate 32.00 percent
Sales Tax Rate 15.00 percent

Frequently Asked Question

How is tax calculated on salary in Namibia?

The most straightforward way to calculate effective tax rate is to divide the income tax expenses by the earnings (or income earned) before taxes. For example, if a company earned $100,000 and paid $25,000 in taxes, the effective tax rate is equal to 25,000 ÷ 100,000 or 0.25.

Do you pay tax in Namibia?

Individual income tax rates in Namibia are progressive to 37%. Namibia tax year runs from 1 March to 28 February. Basis – Resident and nonresident individuals are taxable on all income received or accrued from a Namibian source or deemed source that is not of a capital nature.

What percentage do we pay on income tax?

There are seven tax brackets for most ordinary income for the 2020 tax year: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent.

How do I calculate my monthly tax on my salary?

Total Deductions = Professional tax + EPF (Employee Contribution) + EPF (Employer Contribution) + Employee Insurance. Total Deductions = Rs 2,400 + Rs 21,600 + Rs 21,600 + Rs 3,000 = Rs 48,600. Take-Home Salary = Rs 7,50,000 – Rs 48,600 = Rs 7,01,400.

Is housing allowance taxable in Namibia?

Housing allowance is taxable, however 1/3 is exempt if the employer has an approved housing scheme; 2. The use of a company car is taxable at 1.5% if all costs are paid by the employer and 1.4% if you as an employee pays the fuel cost.

What is the VAT rate in Namibia?

VAT is levied at the standard rate of 15% on the supply of most goods and services and on the importation of goods. It is mandatory for a person who carries on a business with an annual taxable turnover above N$500,000 to apply for VAT registration.

Is car allowance taxable in Namibia?

Travel, entertainment, and motor vehicle expenses are potentially deductible, but the onus is on the employee to prove they were incurred in the production of taxable income. Where allowances are provided by the employer, this onus is more readily discharged, but the deduction cannot normally exceed the allowance.

Is there property tax in Namibia?

The applicable tax rates are set by the local municipalities. For the tax year 2009-2010, the rates applicable in the municipality of Windhoek in respect of real properties are 0.001578% of the site value per month and 0.000434% of the improvement value per month.

How tax is deducted from salary?

TDS is Tax Deducted at Source – it means that the tax is deducted by the person making payment. For instance, An employer will estimate the total annual income of an employee and deduct tax on his Income if his Taxable Income exceeds INR 2,50,000. Tax is deducted based on which tax slab you belong to each year.

How much should I take out for taxes?

To cover your federal taxes, saving 30% of your business income is a solid rule of thumb. According to John Hewitt, founder of Liberty Tax Service, the total amount you should set aside to cover both federal and state taxes should be 30-40% of what you earn.

What income is tax free?

As per interim budget 2019, Individual taxpayers having taxable annual income up to Rs.5 lakh will get full tax rebate u/s 87A and therefore will not be required to pay any income tax. However Income tax Slabs and Rates will remain unchanged for the FY2019-20.

How much is my monthly income?

Multiply your hourly wage by how many hours a week you work, then multiply this number by 52. Divide that number by 12 to get your gross monthly income.

How salary is calculated?

Here the basic salary will be calculated as per follows Basic Salary + Dearness Allowance + HRA Allowance + conveyance allowance + entertainment allowance + medical insurance here the gross salary 660,000. The deduction will be Income tax and provident fund under which the net salary comes around 552,400 .

What exactly is a tax?

The tax on this income is the percentage of your income the government takes. This is the amount of your income that can be taxed after you have taken any deductions and exemptions that are applicable to you. Deductions reduce the amount of tax that you owe.

What is the purpose of tax?

The main purpose of taxation is to raise revenue for the services and income supports the community needs. Public revenues should be adequate for that purpose. 2. Tax should, as far as possible, be levied equitably, according to ability to pay.