Namibia: Tax measures in budget 2024-2025

Budget for 2024-2025 includes tax-related proposals

Budget for 2024-2025 includes tax-related proposals

The budget for 2024-2025, presented 28 February 2024, includes the following tax-related proposals:

  • Reduction of the non-mining company tax rate to 31% effective 1 January 2024, to 30% by 1 January 2025, and to 28% during FY 2026/2027
  • Replacement of the 3:1 thin capitalization ratio with a 30% limit on interest deductions
  • Introduction of a 10% dividend tax effective 1 January 2026
  • Repeal of tax exemptions for nonresident shareholders of foreign insurance companies
  • Introduction of a special economic zone regime (offering a reduced corporate income tax rate of 20% and value added tax (VAT) zero rating) and an internship tax incentive program
  • Introduction of buildings improvement deductions with an annual capital depreciation allowance of 10% for eligible trade buildings
  • Increase in mandatory VAT registration threshold from N$500,000 to N$1 million effective FY 2024/2025
  • Exploration of VAT electronic invoicing (e-invoicing) system
  • Increased income tax threshold for individuals to N$100,000 effective 1 March 2024
  • Increased “sin taxes” or excise taxes that generally apply for alcoholic beverages and tobacco products
  • Introduction of adjustments to transfer duties and stamp duties brackets, including raising the exempt level to N$1.1 million and increasing the threshold for the 8% duty rate to N$3.15 million, effective FY 2024/2025
  • Introduction of a supertax transfer duty and stamp duty bracket for luxury residential properties costing over N$12 million

Read a March 2024 report [PDF 549 KB] prepared by the KPMG member firm in Namibia



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