Gross employment income includes all receipts in respect of services rendered, in cash or in kind, including, but not limited to, the following:
- Remuneration (e.g. salaries and fees).
- Fringe benefits (e.g. free use of company assets or benefits provided by the employer).
- Allowances and subsidies, subject to deductions for business expenses.
- Deemed value of accommodation provided by employer.
- Deemed value of the use of a company motor vehicle.
Business and farming income earned by individuals may be subject to certain provisions of corporate taxation. It is recommended that tax advice is obtained in this regard.
Namibia does not have capital gains tax. The profits on the sale (or any other form of alienation) of mining and petroleum licences/rights, and the transfer (or any other form of alienation) of any share/interest (whether directly or indirectly) in a company owning a mineral/petroleum licence or right, is taxable in terms of the specific inclusions in gross income.
Dividends are exempt from tax (except when paid to non-resident persons, see Withholding taxes in the Taxes on personal income section).
The originating cause of the interest and the place where the underlying activities are performed will determine the source of interest.
Interest is subject to 10% WHT (see Withholding taxes in the Taxes on personal income section).
However, the following exemptions apply in the case of natural persons:
- Interest received from stock or securities (including treasury bills) issued by the government.
- Interest received from the NAMPOST Savings Bank.
The principal exemptions on salaried income are as follows:
- Under certain conditions, the remuneration of heads of foreign governments and United Nations (UN) employees stationed in Namibia is exempt from taxation.
- Relocation expenses paid directly by the employer are not taxed as fringe benefits in the employee's hands.
- Reimbursement of actual business expenses paid on behalf of the employer is not taxable.
- Where an approved scheme by the Receiver of Revenue is established for the provision of employee housing, the taxable fringe benefit arising from provision of accommodation, housing allowances, or mortgage interest subsidies is reduced by a maximum of one-third. Proof of housing expenses should be retained by the employer to verify the tax benefit provided to the employee.
- Employer contributions to approved Namibian retirement funds and medical aid schemes (private health insurance) are not taxable in the hands of employees.