A. Value Added Tax/Sales Tax (National Goverment)
1. Name of Tax, Levied in Terms of Which Act (Name, Number and Year)
Value Added Tax, Value Added Tax Act (VAT), 10 of 2000
2. Institution Responsible for Administration
Inland Revenue Directorate
3. Taxpayer
VAT is levied on all supplies made by registered persons in the course or furtherance of their enterprises.
A registered person is defined in section 1 and means a person who is registered or deemed to be registered under this Act.
Registration is compulsory where a person carries on any enterprise and the total value of taxable supplies made in a period of 12 months exceed N$ 200 000 (s15).
A person can also voluntary register for VAT. There is no limit with regard to voluntary registration.(s15 and 16).
4. Time When Tax is Levied
Time of supply or importation.
As a general rule, a supply of goods or services shall take place at the time the invoice is issued by the supplier or recipient or when payment is received, whichever is the earlier.
Special time of supply rules are applicable in certain circumstances.
5. Included in Tax Base
The supply of goods or services by a registered person in the course or furtherance of an enterprise.
The importation of goods in Namibia by any person; and
The supply of imported services by any person.
6. Positive Rates
The Act provides for three different rates namely:
- A zero rate;
- A flat rate of 15%; and
7. List of Goods/Services at Zero Rate
The following goods and services are subject to the zero rate:
- the supply of mediacl or paramedical services by -
1. any person referred to in section 17(1) of the medical and dental Act, 2004 (ACt No 10 of 2004; or
2. a person who holds a written authority under the Medical and Dental Act (Act No. 10 of 2004); or
3. a nurse or midwife registered under the Nursing Act, 2004 (Act No.8 of 2004); or
4. a practitioner or paramedic registered under the Allied Health Professions Act, 2004 (Act No. 7 of 2004);
- a supply of dry white or wet or dry brown granular sugar, and of fresh milk;
- a supply of services and rooms by a person in the ordinary course of operating a registered hospital, maternity home, nursing home, convalenscent home, hospice or clinic.
- a supply of funeral undertaking services.
- Goods that are exported.
- Supply of goods where the goods are not situated in Namibia at the time of supply.
- Supply of goods under a rental agreement where the goods are used exclusively in another country.
- Supply of goods or services to an export processing zone enterprise or an export processing zone management company for use by the enterprise or company in an export processing zone.
- Supply of international transport services.
- Supply of services directly in connection with land or any improvement thereto, situated outside Namibia.
- Supply of services directly in respect of-
movable property situated outside Namibia
repair, maintenance, cleaning or reconditioning of a foreign-going aircraft or ship
- Supply of services directly to a non-resident not being a registered person-
(i) comprising the handling, pilotage, salvage or towage of any foreign-going ship or aircraft while in Namibia
(ii) provided in connection with the operation or management of any foreign-going aircraft or ship
(iii) comprising the storage, repair, maintenance, cleaning, management or arranging the provision of a container temporarily imported into Namibia
- Supply of services comprising the repair, maintenance, cleaning or reconditioning of a railway train
- Supply of services physically rendered elsewhere than Namibia
- Supply of services to a non-resident who is outside Namibia at the time of supply
- Supply of services comprising of the filing, prosecution, granting, maintenance, transfer, assignment, licencing or enforcement of any intellectual property rights for use outside Namibia.
- Supply of a going concern if both persons are registered for VAT
- Supply of leaded and unleaded petrol, distillate fuels and mixtures of illuminating or heating kerosene with lubricity agents
- Supply of mahango, mahango meal or maize meal when not furnished or served as a meal
- Supply of goods or services by any charitable organisation, children's home, old-age home or orphanage
- Supply of telecommunication services to a foreign telecommunications operator and to a residential accounts.
- Supply of postage stamps (not collector's pieces)
- Supply of electricity, water, refuse removal and sewerage to residential accounts
- Supply of parts or services rendered in pursuance of any guarantee given in respect of new goods
- Supply of goods or services comprising of the sale of immovable property; or the erection of or extension to a building, used or tobe used solely for residential purposes.
- Supply of livestock (other than game)
- Supply of agricultural land to the state to be usedsolely forresettlement purposes;
- Supply of water to or by a local water committee apporved by the Minister of Agricultural, Water and Rular Development;
- supply of fresh and dried beans (excluding canned and frozen beans);
- supply of sunflower cooking oil (blended cooking oil remains subject to tax at the standard rate);
- supply of fried our or processed animal fat used for the preparation of food;
- supply of bread and cake flour (sifted or unsifted);
- supply of bread, but doeas not include these items when furnished or served as a meal, or as cooked or prepared food.
9. List of Exemptions
The following goods and services are exempt from VAT (s10)
- Supply of goods or services to Heads of State (including Vice-presidents and Prime Ministers) of foreign States.
- Supply of services by a trade union to the benefit of members if the costs are met out of the members’ contribution
- Supply of goods or services as a fringe benefit to an employee
- Supply of public transport services
- Supply of accommodation in a dwelling
- Supply of services by a registered hospital, maternity home, nursing home, convalescent home, hospice or clinic
- Supply of education services
- Supply of interest and margin-based financial services or intermediation services by a buy-aid society or medical-aid fund
- Supply of financial services
10. Tax Period
The tax period for a person involved in farming activities can elect a period of two, four, six or twelve calendar months ending on the last day of the last month of each such period.
In all other cases it is a period of two calendar months divided in-
Category A, being periods ending on the last day of January, March, May, July, September and November of the calendar year, and
Category B, being periods ending on the last day of February, April, June, August, October and December of the calendar year.
The Commissioner determine whether a person falls within Category A or B.Vat is payable on or before the 25th day of the month following the end of the tax period.
11. Deferement Schemes/Special Schemes
A VAT Import Account allows a registered person to import goods and only pay the VAT on or before the 20th of the month following the month of import.(s14)
12. Beneficiary of Revenue
State Revenue Fund
B. Excise Taxes Alcohol (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Excise duty on alcohol, Customs and Excise Act 20 of 1998
2. Institution Responsible for Administration
Directorate Customs and Excise
3. Taxpayer
Importer/ local manufacturer
4. Included in Tax Base
Excise duty is levied on certain locally manufactured goods. Relief from excise duty is available where excisable goods are exported. Relief is also available in respect of farming, forestry and certain manufacturing activities.
5. Tax Rate (Tariff Heading, Description, Rate Per Litre or Per Litre of Absolute Alcohol)
Tariff item 104.10 22 Malt Beer:
2 563 cents (25 63 dollars) per litre of absolute alcohol
Tariff item 104.1505 Sorghum beer
7.82 cents per litre
Tariff item 104.1525 Spirits (local)
3337 cents (33.37 dollars) per litre of absolute alcohol
Tariff item 104.1570 Sparkling wine
227.6 cents per litre
Tariff item 104.1540 Fortified still wine
182.5 cents per litre
Tariff item 104.1510 Unfortified still wine
80.7 cents per litre
Tariff item 104.1550 Other still fermented beverages unfortified
130.5 cents per litre
Tariff item 104.1560 Other, still fermented beverages, fortified
231.4 cents per litre
Tariff item 104.2010 Wine spirits, manufactured in Namibia by the distillation of wine
3 671 cents (36.71 dollars) per litre of absolute alcohol
Tariff item 104.2015 Spirits, manufactured in Namibia by the distillation of any sugar cane product
3 671 cents (36.71 dollars) per litre of absolute alcohol
Tariff item 104.2023 Spirits manufactured in Namibia by the distillation of any grain product
3 671 cents (36.71 dollars) per litre of absolute alcohol
Tariff item 104.2029 Other spirits, manufactured in Namibia
3 671 cents (36.71 dollars) per litre of absolute alcohol
Tariff item 104.2060 Imported spirits of any nature.
3 575 cents (35.75. dollars) per litre of absolute alcohol or 1 537 cents (15.37 dollars) per litre
Tariff item 104.2070 Spirits of whatever nature in imported liqueurs, cordials and similar spirituous beverages.
3 575 cents (35.75 dollars) per litre of absolute alcohol
Note:
Alcoholic Fruit Beverages (AFB’s) and ciders are charged at the rate applicable to “other still fermented unfortified”
Spirit coolers are charged at the rate applicable to spirits
6. Rebates
The duty is intended to tax potable (i.e. for human consumption) alcohol. Alcohol used for other purposes such as intermediate products in manufacture or for medical purposes, is not intended to fall within the scope of the duty.
However to protect the revenue all alcohols are liable to duty and rebates are given to non-potable alcohol used for (approved) purposes. De-naturants are added to alcohol intended for commercial purposes to deter illicit consumption.
7. Beneficiary of Revenue
State Revenue Fund
C. Excise Taxes Tobacco Products (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Excise duties, Customs and Excise Act, 20 of 1998
2. Institution Responsible for Administration
Directorate Customs and Excise
3. Taxpayer
Importer and local manufacturer
4. Included in Tax Base
Excise duties apply to certain locally manufactured goods. Relief from excise duty is available where excisable products are exported.
5. Tax Rate (Tariff Heading, Description, Rate Per Kilogramme, or Per 10 cigarettes/Cigars)
Tariff item104.3020 Cigarettes 175.4 cents per 10 cigarettes
Tariff item104.3510 Cigarette tobacco (hand rolling) 10 297 cents (102.97 dollars) per kg
Tariff item104.3010 Cigars 76 670 cents (766.70 dollars) per kg
Tariff item104.3520 Pipe tobacco 5 251 cents ( 52.51 dollars) per kg
6. Rebates
None in Namibia
7. Beneficiary of Revenue
State Revenue Fund
D. Excise Taxes Fuel/Hydrocarbon Oils (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Fuel levy, Customs and Excise Act, 20 of 1998
2. Institution Responsible for Administration
Directorate Customs and Excise
3. Taxpayer
Importer
4. Included in Tax Base
Imposed under Motor Vehicle Accidents Act, 1990
Indirect tax on fuel consists of the following components:
The Fuel Levy – which accrues to the State Revenue Fund
The Road Accident Fund Levy – which is destined to meet claims from victims of road accidents
5. Tax Rate (Rate of Duty Per Litre, Total Tax Burden as a Percentage of Retail Price)
Leaded petrol
General fuel levy 98
Road Accident Fund Levy 3.7
Customs and Excise SACU 4.0
Equalization Fund 10
Illuminating paraffin marker N/A
Retail price 3.92c/l
Unleaded Petrol
General fuel levy 94.8
Road Accident Fund Levy 3.7
Customs and Excise SACU 4.0
Equalization Fund 10
Illuminating paraffin marker N/A
Retail price 4.00c/l
Diesel
General fuel levy 81
Road Accident Fund Levy 2.2
Customs and Excise SACU 4.0
Equalization Fund 10
Illuminating paraffin marker N/A
Retail price 3.67c/l
6. Rebates/Concessions/Special Schemes
A rebate scheme is in place to allow certain exceptions including farmers involved in primary production and used in sea going vessels.
7. Beneficiary of Revenue
State Revenue Fund
E. Excise Taxes - Non Alcoholic Bevarages/Other (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Excise duties, Customs and Excise Act, 20 of 1998
2. Institution Responsible for Administration
Directorate Customs and Excise
3. Taxpayer
Importer
4. Included in Tax Base
Waters including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow waters, including mineral waters, containing added sugar or other sweetening matter or flavoured and other non-alcoholic beverages.
5. Tax Rate (Tariff Heading, Rate Per Litre, or Per Kilogramme, or Per Unit)
Tariff item104.0510 Mineral waters, including spa waters and aerated waters, put up in closed bottles or other closed containers ready for drinking without dilution (excluding beverages packed in plastic tubes or similar containers and which are normally consumed in a frozen state): 0c/l
Tariff item104.0520 Lemonade and flavoured mineral waters, including flavoured spa and aerated waters, put up in closed bottles or other closed containers ready for drinking without dilution (excluding beverages packed in plastic tubes or similar containers and which are normally consumed in a frozen state): 0c/l
Tariff item104.0530 Non-alcoholic beverages not elsewhere specified or included in this tariff item, put up in closed bottles or closed containers ready for drinking without dilution (excluding beverages packed in plastic tubes or similar containers and which are normally consumed in a frozen state): 0c/l
6. Rebates
None
7. Beneficiary of Revenue
State Revenue Fund
F. Excise Duty on Luxury Goods - Ad Valorem (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Ad valorem excise duties, Customs and Excise Act, 20 of 1998
2. Institution Responsible for Administration
Directorate Customs and Excise
3. Taxpayer
The importer/local manufacturer
4. Included in Tax Base
Excise duty is ad valorem duty on luxury goods such as motor vehicles, cosmetics, computers, televisions and audio equipment. The duty is chargeable on value of finished goods and is collected from the manufacturer or importer
5. Tax Rate
Gaming machines, photocopying equipment, printing, vending and office machines
(including computers, fax machines and modems) and TV sets 5%
Motorcycles (200-800cc) 5%
Clocks, firearms, motorcycles (greater than 800cc), photographic film 7%
Haircare products, perfumes, skincare products, cosmetics and toiletries 7%
Video equipment, hi-fi equipment, optical lenses, photographic/cinematographic equipment, pre-recorded tapes and compact discs 7%
Motor vehicles (sliding scale) Max 8%
6. Special Methods (to deal with the specific needs of some industries)
No special methods
7. Beneficiary of Revenue
State Revenue Fund
G. Excise Duty on Other Goods (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Institution Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (specify ad valorem or specific)
6. Special Methods (to deal with the specific needs of some industries)
7. Beneficiary of Revenue
H. Air Passenger Duty/ Departure Tax (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Passengers Tax, Namibia Airports Company, 25 of 1998
2. Institution Responsible for Administration
The tax is collected by operators (airlines) and agents acting on behalf of operators whom are required to pay it over to IATA sorting agency.
3. Taxpayer
Passengers on international flights and those departing to the BLNS countries (Botswana, Lesotho, South Africa and Swaziland)
4. Included in Tax Base
A tax of N$50 per fee-paying passenger travelling domestically.
N$100 – regional (SACU)
N$200 – international
5. Tax Rate
A tax of N$100 per fee-paying passenger departing on international flights and N$50 per passenger departing to the BLNS countries (Botswana, South Africa, Lesotho and Swaziland) is payable from February 1999.
6. Exemptions
Military personnel and aircrew returning from duty outside Namibia
7. Beneficiary of Revenue
State Revenue Fund
I. Financial Transaction Taxes/Stamp Duty (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
Stamp duty Stamp Duties Act, 15 of 1993
2. Institution Responsible for Administration
Inland Revenue Directorate
3. Taxpayer
In general the holder of the instrument.
4. Included in Tax Base
Every instrument as described in Schedule 1 of the Stamp Duties Act.
5. Tax Rate
Stamp duty is levied at the rates indicated:
Item Description Rate N$
1. Agreement or contract in respect of which no other duty is specifically provided for 5,00
2. Antenuptial or postnuptial contract 20,00
3. Bill of exchange or promissory note for every N$1 000 or part thereof 2,00
4. Debit entries on cheque or credit card accounts ,20 on savings accounts ,10
5. Bonds On bonds hypothecating immovable property for every N$ 1 000 or part thereof of the debt secured or ceded 5,00 By way of suretyship only and as collateral to a duly
Stamped bond for every N$ 1 000 or part thereof of
The debt secured 2,00
6. Customs and Excise documents 1,00
7. Duplicate original of any instrument 1,00
8. Fixed deposit receipt for every N$1 000 or part thereof and for every period of 12 months for the deposit is made 1,00
9. Hire purchase agreement or contract or financial lease - for every N$1 000 of the amount payable (inclusive of interest and finance charges subject to a maximum duty of N$ 1 00) 1,00
10.1 Lease or agreement of lease on the aggregate amount of rent and other consideration payable over period of lease for every N$1 000 or part thereof
where such period does not exceed 5 years 5,00
exceeds 5 years but not 10 years 8,00
exceeds 10 years but not 20 years 10,00
exceeds 20 years 15,00
10.2 Cession or assignment by a lessee of any of his rights 5,00
11 Marketable security
11.1 Issue
Original issue of shares, stock or debentures if
Transferable only by registration for every N$1 000
Or part thereof 2,00
Bearer shares for every N$ 1 000 or part thereof 5,00
11.2 Transfer
Registration of transfer of any marketable security
Within six months from the date of execution of the
Instrument of transfer for every N$1 000 thereof:
(Excludes listed shares purchased on the NSE) 2,00
12 Partnership agreement 20,00
13 Policy of life insurance for every N$1 000 or part thereof of the aggregate sum assured excluding the value of any annuity 1,00
14 Power of attorney 5,00
15 Security or suretyship where the amount secured is stated for every N$1 000 or part thereof 1,00
Subject to a maximum of 50,00
Where the amount secured is not stated 50,00
16 Transfer deed relating to immovable property for every N$1 000 or part thereof of the value or
consideration where value/consideration does not
exceed N$ 20 000 5,00
- where value/consideration exceeds N$ 20 000, the
duty is 100,00 and, for every N$1 000 or part thereof
of the value/consideration in excess of N$20 000 10,00
6. Exemptions
Certain transactions under the different items
7. Beneficiary of Revenue
State Revenue Fund
J. Payroll Taxes/Social Security Taxes (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
2. Institution Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions
7. Beneficiary of Revenue
K. Other Taxes (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
Transfer duty Transfer Duty Act, 14 of 1993
2. Institution Responsible for Administration
Inland Revenue Directorate
3. Taxpayer
The person who has acquired property or in whose favour or for whose benefit any interest in or restriction upon the use of property has been renounced.S2
4. Included in Tax Base
The value of any property acquired by any person or the amount by which the value of any property is enhanced by the renunciation, of an interest in or restriction upon the use or disposal of that property.S2.
5. Tax Rate
Transfer duty is levied at a rate of:
|
Value of property N$ |
|
|
Natural Person: Non - Agricultural |
|
|
0 - 400 000 |
Nil |
|
400 001 - 800 000 |
1% of value exceeding N$ 400 000 |
|
800 001 - 1 500 000 |
N$8 000 plus 5% of value exceeding N$800 000 |
|
1 500 000 and above |
N$11 000 plus 8% of value exceeding N$1 500 000 |
|
Natural Person: Affirmative Action Loan Scheme for commercial farmland |
|
|
0 -500 000 |
Nil |
|
500 001 - 1 000 000 |
1% of value exceeding N$500 000 |
|
1 000 000 and above |
N$ 500 plus 3% of value exceeding N$1 000 000 |
|
Other persons |
|
|
Any value |
12% |
6. Exemptions/Rebates/Deferments/Special Schemes
The more important exemptions are: S9
- The State
- A regional council
- A local authority council
- A religious or educational institution or charitable institution
- A public hospital
- An heir or legatee in respect of property acquired by virtue of any testamentary disposition or intestate succession
- A surviving spouse in respect of property acquired in any manner from the estate of the deceased spouse
7. Beneficiary of Revenue
State Revenue Fund
L. Other Taxes 2 (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
2. Institution Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions/Rebates/Deferments/Special Schemes
7. Beneficiary of Revenue