Namibia: Budget 2020-2021, no new taxes proposed (COVID-19)
Namibia: Budget 2020-2021, no new taxes proposed
The Finance Minister in late May 2020 presented the 2020-2021 budget that in partial response to challenges presented by the coronavirus (COVID-19) pandemic, generally proposes no new taxes for 2020.
There were no proposed increases or changes to the tax brackets. The budget, however, proposes an increase in the rate of excise tax on alcohol and tobacco products (so-called “sin taxes”). The establishment of the Namibia Revenue Authority is a key administrative proposal for 2020-2021.
Other proposals from previous budgets are still under review and pending consultations, and include proposals for:
- Introduction of a 10% dividend tax for residents
- Repeal of the conduit principle that would result in the taxation of trusts
- Imposing “normal” corporate income tax on income derived from commercial activities of charitable, religious, educational and other types of institutions
- Introduction of value added tax (VAT) on the income of “listed asset” managers
- Removing zero-rating VAT with respect to sugar
- Mandatory requirement for vendors to issue tax invoices for VAT purposes
- Phase out of tax incentives for manufacturers and exporters of manufactured goods
- Repeal the provisions of the export processing zone rules
- Introduction of a “special economic zones” regime
The proposal to disallow the tax deductibility of royalties for mining entities was withdrawn.
Read a July 2020 report [PDF 260 KB] prepared by the KPMG member firm in Namibia
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