Income tax on rent, worked example, in Namibia
Taxation Researcher | May 25, 2022
| Non-resident couple´s joint income1 | ||||
| Monthly Rental Income2 | 1,500 | 6,000 | 12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less VAT3 | 15% | 2,700 | 10,800 | 21,600 |
| Less Costs4 | 25% | 4,500 | 18,000 | 36,000 |
| Less Depreciation5 | 5,217 | 22,029 | 46,957 | |
| = Taxable Income | 5,583 | 21,171 | 39,443 | |
| Income Tax 4 | ||||
| Up to NAD50,000 | 0% | - | - | - |
| NAD50,000 - NAD100,000 | 18% | - | 1,286 | 1,286 |
| NAD100,000 - NAD300,000 | 25% | - | 3,507 | 8,075 |
| NAD300,000 - NAD 500,000 | 28% | - | - | - |
| NAD500,000 - NAD 800,000 | 30% | - | - | - |
| NAD800,000 - NAD 1,500,000 | 32% | - | - | - |
| Over NAD 1,500,000 | 37% | - | - | - |
| Annual Income Tax Due | - | 4,793 | 9,361 | |
| Tax Due as % of Gross Income | 0.00% | 6.66% | 6.50% | |
| Source: Global Property Guide research |
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Notes
1 The property is jointly owned by husband and wife, bt then taxed separately (50% upon each partner).
2 Exchange rate used: 1.00 US$ = 14.00 NAD
3 The 15% Value Added Tax (VAT) on leasing property is included in the gross rental income.
4 Estimated values. Income-generating expenses are deductible when calculating taxable income.
5 Estimated values. Depreciation of new buildings is computed at 4% annually over a period of 20 years.