Namibia: Taxes and Costs
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Namibia's rental income tax is high
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | nil | 6.4% | 8.0% |
| Click here to see a worked example | |||
Source:
Disclaimer |
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Rental income is taxed at progressive rates. Taxable income is computed by deducting the 15% VAT for leasing property, income-generating costs, and depreciation expense from the gross rental income. Depreciation of new buildings is computed 4% annually over a period of 20 years.
Married couples are taxed separately. Individuals are taxed as follows:
INCOME TAX |
|
| TAXABLE INCOME, NAD (US$) | TAX RATE |
| Over 24,000 (US$3,301) | nil |
| 24,001–40,000 (US$5,501) | 17.5% on band exceeding US$3,301 |
| 40,001–80,000 (US$11,002) | 29.5% on band exceeding US$5,501 |
| 80,001–200,000 (US$27,506) | 34.5% on band exceeding US$11,002 |
| Over 200,000 (US$27,506+) | 35% on band exceeding US$27,506 |
| Source: Global Property Guide | |
Stamp duty is payable on the aggregate rent over the period of lease according to the following scale:
STAMP DUTY |
|
| STAMP DUTY | RATE |
| Does not exceed 5 years | 0.5% |
| 5–10 years | 0.8% |
| 10–20 years | 1% |
| 20 years + | 1.5% |
A lease for a definite period with no provision for renewal must be stamped for the entire period.
A lease for a definite period with an option for renewal, must be stamped according to the aggregate of the a) original lease period; b) definite period of continuance; and c) two years if the lease is to continue for an indefinite period after the original lease period.
A lease for an indefinite period must be stamped for two years only.
If the aggregate rent exceeds the selling price of the leased property, duty is payable only on the selling price. If the lease is terminated before the end of the lease period, a refund of a proportion of the duty can be claimed.
Capital Gains Tax
There are no capital gains taxes in Namibia.
Namibia - more data and information
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