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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.

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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The proposal to disallow the tax deductibility of royalties for mining entities was withdrawn.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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