Namibia, Republic of

Individuals who perform business or farming activities should also consider the Other taxes section in the corporate summary.

Social security contributions

Namibia has a limited social security system. The Maternity Leave, Sick Leave, and Death Benefit Fund are compulsory for all employees. It is funded by employer and employee contributions of 0.9% of the basic salary, with a maximum contribution of NAD 81 per month each (i.e. the total monthly contribution of both the employer and the employee will amount to NAD 162).

Workmen's compensation

Under the Employees Compensation Act, employers are required to contribute to a fund that provides cash benefits for industrial injury, disability, and death. Contribution rates vary according to inherent occupational risk, from less than 1% in most low-risk commercial/administrative occupations to 8% for high-risk sectors (drilling, tunnelling, and rock-blasting). Employees whose annual remuneration exceeds NAD 81,300 are normally excluded from coverage.

Consumption taxes

Value-added tax (VAT)

VAT is a transaction tax, and the implications will vary for different transactions. Some transactions are taxed at a rate of 15% or 0% while other transactions are exempt from VAT. See the Other taxes section in the Corporate summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Namibia.

Inheritance, estate, and gift taxes

There are no inheritance, estate, or gift taxes in Namibia.

Property taxes

Property taxes are levied by municipalities based on municipal valuations of properties.

Luxury and excise taxes

Excise duties are levied on local production of excisable products (e.g. cigarettes, liquor, fuel) and are included on most excisable products imported from another Southern African Customs Union (SACU) country in terms of the duty at source procedures. Identical excise duty rates are applied throughout the SACU. See the Other taxes section in the Corporate summary for more information.

Stamp duty

Certain transactions may attract stamp duty. The amount of stamp duty payable differs and is based on the nature of every individual transaction. See the Other taxes section in the Corporate summary for more information.