What You Need to Know About Namibia Corporate Tax

Namibia is actively reducing its corporate tax rate to attract investment: the standard rate dropped to 30% in January 2025, with a further cut to 28% planned for the 2026/2027 fiscal year. At the same time, new rules have tightened interest deductions and introduced a 10% dividend tax effective January 2026, so the landscape is shifting. This guide covers how to calculate your liability, manage provisional tax payments, and file your annual return with Inland Revenue.

1. What is Corporate Tax?

Corporate tax in Namibia is the income tax charged on the profits of companies operating in the country. The standard rate for non-mining companies was reduced to 30% effective 1 January 2025, with a further reduction to 28% planned for the 2026/2027 fiscal year. Mining companies are taxed at higher rates depending on the commodity. The Ministry of Finance through Inland Revenue administers corporate tax.

2. Who does it apply to?

This usually applies to:

Companies incorporated in Namibia
Branches of foreign companies operating in Namibia
Non-resident companies earning income from Namibian sources
Mining and petroleum companies (at different rates)
Manufacturing companies operating in export processing zones

3. Why does it matter?

Understanding corporate tax helps you:

Stay compliant with tax laws
Avoid penalties and late fees
Keep proper records
File and pay correctly
Plan your cash flow better

4. How does it work?

Here's the basic process:

Register your company with Inland Revenue and obtain a tax reference number
Maintain proper books of account throughout the financial year
Calculate taxable income (revenue minus allowable deductions and capital allowances)
Pay provisional tax in two instalments during the year
File your annual income tax return within 7 months of your financial year-end
Pay any balance of tax due
Inland Revenue may issue an assessment based on your filing

5. What forms are involved?

Annual Income Tax Return - Filed with Inland Revenue for corporate income tax
Provisional Tax Return - For estimated tax payments (two instalments per year)
Financial Statements - Audited accounts submitted with the return
Tax Computation Schedule - Detailed calculation of taxable income

6. What information do you need?

Before handling corporate tax, make sure you have:

Your company's tax reference number
Audited financial statements
Schedule of capital allowances (wear and tear, initial allowances)
Details of all income sources (domestic and foreign)
Records of withholding tax deducted at source
Prior year assessments and payments
Transfer pricing documentation (for related-party transactions)
Interest deduction calculations (new 30% limit replacing the 3:1 thin capitalisation ratio)

7. Important deadlines

Filing frequency: Annual return
Payment deadline: First provisional tax payment by 30 August. Second provisional tax payment by 28 February. At least 40% of the total actual tax must be paid with the first instalment.
Year-end requirements: File annual return within 7 months of the financial year-end (by 30 September for companies with February year-ends)

8. Common mistakes to avoid

Not applying the reduced 30% rate (effective 1 January 2025)
Missing provisional tax deadlines (30 August and 28 February)
Not paying at least 40% of the actual liability with the first provisional payment
Failing to apply the new interest deduction cap (30% of taxable income, replacing the old 3:1 ratio)
Not accounting for the new 10% dividend tax (effective 1 January 2026)
Overlooking capital allowances on qualifying assets
Missing the 7-month deadline for filing the annual return

9. Simple example

Your company earns N$5,000,000 in revenue and has N$3,500,000 in allowable expenses.

Taxable income: N$5,000,000 - N$3,500,000 = N$1,500,000
Corporate tax at 30%: N$1,500,000 x 30% = N$450,000

Provisional tax payments:

First instalment (by 30 August): At least 40% = N$180,000
Second instalment (by 28 February): Remaining N$270,000

Any balance is settled when filing the annual return.

10. FAQ

Q: What is the corporate tax rate in Namibia? A: The standard rate for non-mining companies is 30% (effective 1 January 2025). A further reduction to 28% is planned for the 2026/2027 fiscal year.

Q: What about mining companies? A: Mining companies face different rates depending on the commodity. Diamond mining companies are taxed at 55%, and other mining companies at rates varying from 32% to 37.5%.

Q: What is the new interest deduction limit? A: The previous 3:1 thin capitalisation ratio has been replaced with a 30% limit on interest deductions, calculated as a percentage of taxable income (EBITDA basis).

Q: What is the new dividend tax? A: A 10% withholding tax on dividends paid by Namibian companies, effective 1 January 2026.

Q: Can I carry forward losses? A: Yes, but there are now caps on the amount of assessed losses that can be carried forward to offset future taxable income.

11. Final takeaway

Namibia's corporate tax rate is 30% (heading to 28%), and paying your provisional tax by 30 August and 28 February while filing your annual return within 7 months of year-end keeps your business compliant.

Caption

What you need to know about Namibia corporate tax: Pay 30% on taxable profits, submit provisional tax by 30 August and 28 February, and file your annual return within 7 months of your financial year-end.

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