Namibia, Republic of

Corporate - Significant developments

Last reviewed - 02 June 2022

On 31 December 2020, the commencement of the Income Tax Amendment Act, 2020 was published in the Government Gazette (No. 7431), which deals with the repealing of Section 5A of the Income Tax Act No. 24 of 1981. This means that certain existing preferential treatments granted in respect of registered manufacturers will be phased out. It is important to note that this will apply to all taxpayers (not only registered manufacturers) that export manufactured goods and who were previously allowed to claim an export sale allowance.

The special tax incentives granted to registered manufacturers in terms of Section 17A (remuneration and training allowance), 17B (export marketing allowance), and 17D (land-based transportation allowance) prior to 31 December 2021 will continue to apply up to the end of five years after the commencement of the Income Tax Amendment Act. Taxpayers who benefit from the export allowance in terms of Section 17C will have a grace period of five years before their incentive lapses.

It also includes the insertion of Section 101A (repeal of certain provisions of Export Processing Zone Act, 1995), which includes the phasing out of tax exemptions pertaining to certain traders. 

Furthermore, in May 2021, a new tax administration body, the Namibia Revenue Agency (NamRA) was launched, who took over the duties of administering tax, customs, and excise laws and services from the Inland Revenue Department. Accordingly, all tax and customs and excise related matters will fall under the ambit of the NamRA.