This is an overview over taxes charged to individuals and companies in Namibia.
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Personal income tax is applicable to total taxable income of an Individual and all individuals are taxed at progressive marginal rates over a series of income brackets. The tax year runs from 1 March to 28 February.
Tax rates for the 2010 tax year are as follows:[1]
| Taxable amount | Rates of tax |
|---|---|
| Where the taxable amount does not exceed N$ 40 000 | 0% |
| between N$ 40 001 and N$ 80 000 | 27% of the amount by which the taxable amount exceeds N$ 40 000 |
| between N$ 80 001 and N$ 200 000 | N$ 10 800 + 32% of the amount by which the taxable amount exceeds N$ 80 000 |
| between N$ 200 001 and N$ 750 000 | N$ 49200 + 34% of the amount by which the taxable amount exceeds N$ 200 000 |
| over N$ 750 000 | N$ 236 200 + 37% of the amount by which the taxable amount exceeds N$ 750 000 |
An employee's salary is normally paid in Namibian dollars (1 US Dollar = 7.37 Namibian Dollars approx.)[2] and income tax is deducted by the employer. Its Capital city, Windhoek is currently ranked 150 overall, most expensive place in the world for expatriates to live.[3] The cross border money transfer facilities are limited and expensive with one of the poorest currency buying and selling rates, because government does not want the money to be sent out of the country. There are no Western Union Money Transfer offices in Namibia.[4]
A 15% Value added tax (VAT) is applicable to almost every commodity. Basic commodities like sugar, bread etc. are exempted from VAT.
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