Global Tax Alert | 28 February 2014

Namibia presents 2014 Budget

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On 19 February 2014, Namibia's Minister of Finance, the Honorable Ms Saara Kuugongelwa-Amadhila, presented her budget speech. She announced that the following amendments will be introduced in the 2014/2015 financial year.

Corporate income tax rate reduction

In line with the prior year's budget speech, the non-mining company rate will be reduced by an additional 1%. The tax rate will be 32%.

Royalty withholding tax

The withholding tax rate applicable to royalties payable to nonresidents will be reduced to 9.6% as a result of the reduction in the company tax rate.

VAT registration threshold

The VAT registration threshold will be increased from N$200,000 to N$500,000 (increased from approximately US$18,500 to US$46,000).

Export levy

The proposed export levy on primary commodities and natural resources (i.e., minerals, crude oil and gas, fish and game) will be introduced in order to promote domestic value-addition. It is informally understood that the rate of the levy will not exceed 2% of the value of the goods exported.

Environmental tax

Tax proposals will be tabled to introduce an environmental tax which will include a carbon dioxide emission tax on motor vehicles, incandescent light bulbs and motor vehicle tires.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Namibia, Windhoek, Namibia
  • Cameron Kotzé
    +264 61 289 1100
  • Friedel Janse van Rensburg
    +264 61 289 1211
  • Yolande Böttger
    +264 61 289 1212
  • Clarissa Garoës
    +264 61 289 1136

EYG no. CM4215