Namibia Corporate Tax Guide 2026

Overview — Corporate Tax in Namibia

Corporate tax in Namibia is governed by the Income Tax Act, 1981 (Act 24 of 1981) as amended, and administered by the Namibia Revenue Agency (NamRA). A company is tax resident if it is incorporated in Namibia or if its place of effective management is in Namibia. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment are taxed on Namibia-source income only. Companies must register for tax with NamRA and obtain a tax registration number. Annual returns are due within 6 months after the end of the company's financial year.

Standard Corporate Tax Rate — 32%

The standard CIT rate for resident companies in Namibia is 32% of chargeable profits. Non-resident companies with a permanent establishment in Namibia are also taxed at 32% on Namibia-source income. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, capital allowances (depreciation), interest costs (subject to thin capitalisation rules), and assessed losses carried forward. Losses may be carried forward indefinitely, subject to the continuity of business and shareholding tests. Capital gains on property are included in taxable income at specified inclusion rates.

Manufacturing & Export Processing — 18%

Companies engaged in manufacturing or operating in the Export Processing Zones (EPZs) benefit from a reduced CIT rate of 18%. Manufacturing includes the physical transformation of raw materials into finished goods, assembly operations, and certain processing activities. EPZ enterprises may qualify for additional incentives including exemption from VAT on imported machinery and equipment, and exemption from customs duties. To qualify for the manufacturing rate, at least 80% of the company's income must be derived from manufacturing activities. The EPZ regime is governed by the Export Processing Zones Act, 1995 (Act 9 of 1995).

Mining & Petroleum — 28%

Companies in the mining and petroleum sectors are subject to a CIT rate of 28% on chargeable profits. This rate applies to the extraction of minerals, oil, and gas. Mining companies are also subject to additional fiscal regimes including mineral royalties (3–5% depending on the mineral), and may be subject to additional profit taxes under their mining licence agreements. Petroleum companies operate under production-sharing agreements with the government and are subject to petroleum income tax at the rate specified in their agreement, typically around 28% with additional profit share arrangements.

Branches of Foreign Companies

Foreign companies operating through a branch in Namibia are taxed at 32% on Namibia-source profits, the same rate as resident companies. Branch profits remitted to the head office attract a branch profit remittance tax of 10% (repatriation tax). This effectively brings the combined rate to 38.8% for repatriated profits. Foreign companies may prefer to incorporate a Namibian subsidiary to access the standard dividend withholding tax regime rather than the branch remittance tax.

Capital Allowances (Depreciation)

Namibia uses a capital allowance system for tax purposes. Rates vary by asset category:

• Plant & machinery — 20% per annum (declining balance)
• Buildings — 4% per annum (straight-line) for commercial and industrial buildings
• Motor vehicles — 20% per annum (declining balance, limited to NAD 500,000 cost)
• Computers & office equipment — 33.3% per annum (declining balance)
• Agricultural assets — 20–50% per annum depending on the asset type

Manufacturing companies may qualify for accelerated capital allowances of up to 30% in the first year on qualifying plant and machinery.

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts a penalty of up to NAD 2,000 plus interest at 10% per annum on the unpaid tax. Additional penalties may apply for failure to maintain proper records or for tax evasion.

Can foreign companies claim treaty relief?

Yes, Namibia has double tax treaties with South Africa, the United Kingdom, India, and several other countries. Treaty relief may reduce withholding tax rates on dividends, interest, and royalties paid to non-residents.

Is there a minimum tax for loss-making companies?

Namibia does not have a turnover-based minimum tax. Loss-making companies may carry forward assessed losses indefinitely against future profits, subject to continuity of business and shareholding tests.

Disclaimer

This guide provides general information about Namibian corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Namibian tax advisor or the Namibia Revenue Agency for advice specific to your situation. InvestmentKit does not provide tax advice.