A Namibian company pays income tax at 30% of its taxable income. The rate has come down in steps: it was 32%, then 31% for years of assessment starting on or after 1 January 2024, and 30% for years starting on or after 1 January 2025, under the Income Tax Amendment Act 4 of 2024.
A worked example
A company with taxable income of N$1,000,000 pays N$300,000. Every extra dollar of profit costs 30 cents in tax: another N$100,000 adds N$30,000, and the company keeps N$70,000. Unlike PAYE for individuals, there are no bands. Our company tax calculator shows the figures for your company.
Registered manufacturers
A company registered as a manufacturer pays 18% on the income from its registered manufacturing activity, for the year it registers and the following nine years. The rate applies only to that income, not to the company's other profits.
No small-business rate
Namibia has no reduced rate for small companies. Mining companies pay different rates (37.5%, or 50% plus a surcharge for diamond mining), and petroleum companies have their own Act.
Provisional tax: two payments
Companies don't wait until the end of the year to pay. The Income Tax Act sets two provisional payments, based on an estimate of the year's tax:
- Within six months of the start of the year, half the estimated tax.
- By the last day of the year, the rest of the estimate.
For a year from 1 March 2026 to 28 February 2027, that means half by 31 August 2026 and the balance by 28 February 2027. Pay late and the Act adds a penalty of 10% of the unpaid amount for each month or part of a month, up to the amount unpaid.
The return
The company's return is due by the last day of the seventh month after its year-end: for a February year-end, by 30 September. The return shows the actual tax, and the provisional payments count towards it.
Weekends
The Act gives the dates as calendar dates and doesn't say what happens when one falls on a weekend: 28 February 2027 is a Sunday. Pay by the Friday before to be safe.
Taxable income
The calculator starts from taxable income, which is the accounting profit adjusted for tax: some expenses aren't deductible and allowances replace depreciation. A loss is carried forward against future profits rather than taxed.
A lower rate?
Some advisers report a planned cut to 28%. No amending Act has been passed, so 30% is the law; the calculator will change if it is.
Sources
- Income Tax Amendment Act 4 of 2024 (Government Gazette 8442)
- Income Tax Act 24 of 1981, consolidated (NamRA)
This is general information, not tax, legal or financial advice.