1. Overview
Incentives apply equally to domestic and foreign investors
The major goals of incentives are employment creation, industrial and economic development, exports and to uplift previously disadvantaged people.
2. Investment Policy
The Namibian Government attempts to attract investors in the manufacturing sector.
The Investment Centre is an agency of the Ministry of Trade and Industry which assists the investors through a qualified team which closely consult the Ministry of Finance.
3. General Incentives
None
4. Free Trade Zones
The Namibian Government affords Export Processing Zone (EPZ) status to companies. EPZ's are exempt from all taxes and duties in Namibia.
EPZ enjoy the following:
EPZ's are allowed to hold foreign currency accounts in local banks.
EPZ enterprises enjoy industrial calm as no strikes or lock-out are allowed in the EPZ- regime
Companies operating under the regime are free to locate their operations anywhere in Namibia
Through the Offshore Development Company, EPZ enterprises also have access to factory facilities rented at economical rates
5. Export Incentives
The following expenditure, which is already fully deductible for tax purposes, is allowed as an additional deduction 25%from income: (S17B)
a) research on the marketing of goods in a foreign country;
b) advertising and soliciting of orders in a foreign country, including attendance of approved foreign trade exhibits and outward trade missions, economy air fare, local travel and accommodation and exhibition costs;
c) provision of samples or technical information to prospective customers in a foreign country;
d) bringing prospective customers from a foreign country to Namibia, including economy airfares and accommodation;
e) preparation or submission of tenders or quotations in respect of goods to be exported to a foreign country
f) expenditure incurred to finalise contractual agreements
g) the appointment of agents in foreign countries
6. Financial Assistance
None
7. Regional Incentives
None
8. Industrial Financing
None
9. Development Programmes And Incentives For Specific Industries
Tax incentives are given to registered manufacturers:
It includes:
The export allowance as discussed above (S17B)
Additional deduction on training expenses and wages 25%(S17A)
Special building allowance - buildings written off 20% in first year of use and balance at 8% for ten years (S17(1)(f))
80% allowance on taxable income derived from the export of manufactured goods (excluding fish and meat) whether produced in Namibia or not (S17C)
50% abatement on taxable income for 5 years, linear phasing out of abatement over following 10 years. (S17D)
10. Tax
10.1. Rates
Registered manufacturer 18%
10.2. Deferral Period
10.3. Tax Holiday
10.4. Depreciation
10.5. Other