Taxation of international assignees
The Namibian tax system is source based. In terms of the source basis of taxation, any amount of cash or otherwise which is received by or which accrues to any person from a source within or deemed to be within Namibia is subject to tax in Namibia, unless the receipt is of a capital nature.
Non-residents are taxed on their Namibian-sourced income only, by virtue of the true source of their income. The source of employment income is determined as the place where the services are rendered, irrespective of the residency of the person making the payment or the place from where the payment is made.
A sliding scale is used to determine the tax rates applicable to individuals. For all years of assessment effective 1 March 2013, the minimum rate is nil percent and the maximum rate applied is 37 percent.
Any change in the tax rates is announced in the yearly budget speech once the draft bill is promulgated for comments and approved by Parliament. The Namibian tax year commences on 1 March to the last day of February that subsequent year. The Namibian tax authority is known as the Namibian Inland Revenue Authority (“NIRA”).
The official currency of Namibia is the Namibia Dollar (NAD).
All information contained in this publication is summarized by KPMG Advisory Services (Namibia) (Pty) Limited, a Namibian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Income Tax Act, No 24 of 1981.
© 2021 KPMG Advisory Services (Namibia) (Pty) Ltd, a Namibian private company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. 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.