Namibia: Worked Example of Tax on Rent

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Last Updated: Mar 12, 2007

Tax Example: Rent

Non-resident couple's joint monthly rental income¹		US$1,500	US$6,000	US$12,000
Annual Rental Income		18,000	72,000	144,000
Less 15% VAT (included in the gross income)²		(2,348)	(9,391)	(18,783)
Less Costs³		(5,093)	(16,905)	(34,667)
Less Depreciation⁴		(5,217)	(22,029)	(46,957)
= Taxable Income		5,342	23,675	43,594
Income Tax Rates
Up to NAD24,000	nil	–	–	–
NAD24,000 – NAD40,000	17.50%	–	766	766
NAD40,000 – NAD80,000	29.50%	–	2,356	2,356
YTL30,000 – YTL78,000	35%	–	606	7,478
Over NAD200,000	35%	–	–	–
= Income Tax Due		–	–	–
Annual Income Tax Due		nil	US$4,606	US$11,478
Tax Due as % of Gross Income		nil	6.40%	7.97%
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on March 12, 2007.

Notes

Grant Thornton Neuhaus is a member firm of Grant Thornton International. Grant Thornton International is not a worldwide partnership. Member firms of the international organization are independently owned and operated.

¹ The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). Exchange rate used: US$ 1 = NAD 7.30149.

² The 15% VAT levied on leasing property is included in the gross rental income.

³ Estimated values.

⁴ Estimated values. Depreciation of new buildings is computed at 4% annually over a period of 20 years.