Expatriate tax ebook - Namibia

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates

Pre arrival procedures
The employers of expatriates are usually required to apply for a Work Permit (WP) prior to the employee taking up employment in Namibia. It is therefore important that the expatriate's employment contract and benefit package is structured in a tax efficient manner before the application is submitted to the Department of Home Affairs in Namibia.

Employment visas
When applying for a WP as mentioned above an application together with a letter setting out the needs as to why an expatriate is required for the position, is submitted to the Ministry of Home Affairs in Namibia.

The employer must also be able to demonstrate that the position was widely advertised in Namibia and that he was not successful in finding a suitable Namibian national to fill the vacancy.

Tax year
The Namibian tax year for individuals runs from 1 March to 28 February.

Tax returns and compliance
Most Namibian national employees working in Namibia pay their tax through payroll withholding tax and are only required to file an abridged tax return on or before 30 June. However, foreign nationals on assignment to Namibia may have a more complicated tax position and may be required to file a more comprehensive tax return, especially when their remuneration contains allowances which are not taxed by the employer but which the employee has to declare and claim expenses against the allowances. This return is also due on or before 30 June.

Income tax rates

Namibia taxes income earned by an individual on a sliding scale with the first N$ 40 000 earned per annum being tax free, thereafter the rates start at 27% and increasing to 37% on all income earned in excess of N$ 750 000 per annum.

Sample income tax calculation

Basic salary earned	360 000
Tax value of housing allowance	60 000
Motor vehicle allowance	72 000
Entertainment allowance	24 000
Sub total	516 000
Less: Pension fund contribution	40 000
Motor vehicle expenses	55 000
Entertainment expenses	24 000
Taxable income for the year	397 000
Tax payable on N$ 200 000	49 200
At 34% on N$ 197 000	66 980
Total tax payable N$ 397,000	116 180

Information about Namibia:

tax planning opportunities

Last updated 21 June 2011

This information has been provided by Grant Thornton Neuhaus, a member firm within Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton Neuhaus nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
Disclaimer

Contact us

For further information on expatriate tax services in Namibia please contact Hartmuth van Alphen.

Select a country

Grant Thornton International is a non-practicing, international umbrella entity organised as a private company limited by guarantee incorporated in England and Wales. References to "Grant Thornton" are to the brand under which the Grant Thornton member firms operate and refer to one or more member firms, as the context requires. Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered independently by the member firms, which are not responsible for the services or activities of one another. Grant Thornton International does not provide services to clients.