Namibia: Tax measures in budget 2024-2025
Budget for 2024-2025 includes tax-related proposals
March 13, 2024
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