Taxation Salaries In Namibia

What is Taxation?

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. A person working as a Tax Manager in Namibia typically earns around 24,800 NAD per month. Salaries range from 12,400 NAD (lowest) to 38,500 NAD (highest).

Frequently Asked Questions

How much must you earn to pay tax in Namibia?

A salary earning individual who earns an income of more than N$ 40 000 per annum and non-salary income in excess of N$ 5 000 per month is liable to pay tax and should register for income tax.

How much is income tax in Namibia?

The Personal Income Tax Rate in Namibia stands at 37 percent. source: Inland Revenue Department.

Is medical aid tax deductible in Namibia?

Contributions to medical aid funds and actual medical costs are not deductible by employees for income tax purposes.

Is foreign income taxable in Namibia?

Namibia has a source based system of taxation with the result that Namibian residents are, save for some exceptions, only taxed on their Namibian income while foreign residents are taxed only on the income generated within Namibia.

What is the VAT rate in Namibia 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.

How do I claim tax back in Namibia?

• The words “Tax Invoice”
• The seller’s name and address.
• The seller’s VAT registration number.
• Your name.
• The date of issue of the tax invoice.
• A tax invoice number.
• A full description of the goods purchased.
• The cost of goods excluding 15% VAT.

Is housing allowance taxable in Namibia?

Housing allowance is taxable, however 1/3 is exempt if the employer has an approved housing scheme; 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.

Is a bonus taxable in Namibia?

Bonuses are paid at the end of each tax year and accrue evenly throughout the year. The company car, with a cost of USD50,000 is used for both business and private and the employer is responsible for maintenance and petrol costs, i.e. the taxable benefit will be 18 percent of the cost of the car per annum.

Is dividend income taxed in Namibia?

You do not pay tax on any dividend income that falls within your Personal Allowance (the amount of income you can earn each year without paying tax). You also get a dividend allowance each year. You only pay tax on any dividend income above the dividend allowance.

What is Namibia withholding tax?

A WHT of 10%, calculated on the gross amount of interest, is payable on interest accruing to any person, other than a Namibian company, from a registered Namibian banking institution or unit trust scheme. The tax withheld is a final tax, and the financial institution is responsible to withhold the tax.

How do taxes work in Namibia?

Namibia has a system of self-assessment, which must include a computation of the taxpayer’s taxable income and tax payable, and the payment of tax due on the income so computed. The income tax return for salaried individuals is due on 30 June and for farmers and business individuals on 30 September.

How do we calculate VAT in Namibia?

• Take the gross amount of any sum (items you sell or buy) – that is, the total including any VAT – and divide it by 117.5, if the VAT rate is 17.5 per cent.
• Multiply the result from Step 1 by 100 to get the pre-VAT total.

How do I register for tax in Namibia?

To register, you need to complete a registration form, and have a copy of your identification document (ID, passport or birth certificate) to submit with the form. Step 2: Click here to download the taxpayer registration form. Now continue to complete the form.

Are income bonuses taxable in Namibia?

While bonuses are subject to income taxes, they don’t simply get added to your income and taxed at your top marginal tax rate. Instead, your bonus counts as supplemental income and is subject to federal withholding at a 22% flat rate.

Do you pay tax on dividends in Namibia?

Dividends – Dividends paid to nonresidents and certain foreign held residents are subject to NRST at 10%, unless the rate is reduced under an applicable tax treaty. Interest – Both residents and nonresidents are taxable on Namibian interest income (subject to certain exemptions and tax treaty relief).