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.

1000

Related content

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The proposal to disallow the tax deductibility of royalties for mining entities was withdrawn.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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal