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$12,000 |
| Tax Rate | nil | 6.4% | 8.0% |
| Click here to see a worked example | |||
Source:
Disclaimer |
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INDIVIDUAL TAXATION
Nonresidents are taxed on their Namibian-sourced income. Married couples are taxed separately.
INCOME TAX
Income is taxed at progressive rates.
INCOME TAX |
|
| TAXABLE INCOME, NAD (US$) | TAX RATE |
| Up to 24,000 (US$3,141) | nil |
| 24,001– 40,000 (US$5,235) | 17.5% on band over US$3,141 |
| 40,001– 80,000 (US$10,469) | 29.5% on band over US$5,235 |
| 80,001– 200,000 (US$26,173) | 34.5% on band over US$10,469 |
| Over 200,000 (US$26,173) | 35% on all income over US$26,173 |
| Source: Global Property Guide | |
RENTAL INCOME
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.
Stamp Duty
Stamp duty is payable on the aggregate rent over the period of lease according to the following scale:
STAMP DUTY |
|
| PERIOD OF TIME | STAMP DUTY RATE |
| Up to 5 years | 0.5% |
| 5 – 10 years | 0.8% |
| 10–20 years | 1% |
| Over 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.
Value Added Tax (VAT)
VAT is levied on rental income at 15%.
CAPITAL GAINS
There are no capital gains taxes in Namibia.
Namibia - more data and information
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