Fringe Benefits: Company Cars, Housing and More

Not everything you receive from your employer arrives as cash, and Namibia taxes many non-cash benefits as part of your income. If your package includes a car, housing or a subsidised loan, these lines are where payslips get confusing.

Company cars. If your employer provides a vehicle for your private use, the taxable value is 1.5% per month of the cost price of the vehicle where the employer bears all the costs. If you pay the fuel costs yourself and the employer covers everything else, the rate drops to 1.4% per month. That value is added to your income and taxed at your normal rates — so a vehicle with a high cost price can add a meaningful amount to your monthly taxable income.

Housing. A housing allowance is taxable, but with an important relief: one third is exempt if your employer has an approved housing scheme. Where free or subsidised housing is provided rather than an allowance, the taxable value is set by reference to the location and the size of the property, with published values that differ between Windhoek, Walvis Bay, larger towns and smaller towns.

Housing loans and other staff loans. A subsidised housing loan is taxable to the extent that the interest you pay is below 12% a year. For other loans, interest-free or subsidised borrowing is generally valued at 12% a year on the loan amount, less any interest you actually paid — though loans used for further study, and small loans, are treated differently.

Meals. Meals supplied at business premises are not taxable. Meals supplied at an employee's residence carry a taxable value per family member above a certain age.

The practical point is that your taxable income can be higher than your cash salary. Our calculator works from your basic taxable salary, so if a significant part of your package is benefits, your real PAYE will differ — and it's worth asking payroll to walk you through how each benefit has been valued.

This is general information, not tax advice. To estimate PAYE on your basic salary, use the calculator.