Tax brackets 20224/5/2023 ![]() ![]() ![]() a non-resident), including a right to use industrial, commercial, or scientific equipment. Consequently, the tax base is now extended to include rentals for the hire of scientific, industrial, or commercial equipment from non-resident persons. WHT is levied at 10% on any royalty paid to a person other than a person ordinarily resident in Namibia or a domestic company (i.e. Interest paid by the state to any person and interest paid by any bank of Namibia to a foreign bank are exempt from WHT on interest. Interest is deemed to be paid on the earlier of actual payment or when the interest is due and payable. The WHT is due 20 days following the month in which the interest was paid. The tax withheld is a final tax, and the financial institution is responsible to withhold the tax. It is the obligation of the financial institution to withhold the tax and pay such tax over to the revenue authorities.Ī WHT of 10% will also be payable on the gross amount of any interest paid by any person to a non-resident. ![]() InterestĪ WHT of 10%, calculated on the gross amount of interest, is payable on interest accruing to any person, other than a Namibian company, from a registered banking institution or unit trust scheme in Namibia. The Namibian company paying the dividend is responsible to withhold the NRST. ‘Dividends’ means “any amount distributed by a company … to its shareholders…”. NRST is payable within 20 days following the month in which the dividends were declared. The rate of NRST may be reduced if a DTA is in place with Namibia. NRST is payable at the standard rate of 10% where a company holds more than 25% shares in the Namibian company. Dividendsĭividends declared by a Namibian company to a non-resident person will be subject to non-resident shareholders tax (NRST), a WHT. A new WHT on interest of 10% applies on all interest paid by a Namibian resident to a non-resident. The gross amount of interest received by any person (other than a Namibian company) from a registered banking institution or unit trust scheme registered in Namibia is subject to WHT of 10%. Withholding taxes (WHTs) are applicable where dividends and royalties (or similar payments) are declared/distributed to non-Namibian residents or where Namibian residents make use of certain services rendered by non-residents. The tax rates for the fiscal year 1 March 2021 through 28 February 2022 are as follows: Taxable income (NAD*) Taxable income is taxed at the individual tax rates as set out under the personal income tax rates section below. Apportionment should be considered when expenses are incurred to generate both taxable income and exempt income. Expenses incurred to generate income exempt from tax are not deductible. ![]() Only expenses incurred to generate ‘income’ may be deducted. The Income Tax Act specifically provides for certain expenditures to be deductible and allows a deduction for capital allowances (e.g. The Income Tax Act provides for certain expenditures and losses actually incurred to generate income to be deducted, provided that these expenses are not personal domestic expenses or of a capital nature. The Income Tax Act provides for certain amounts to be specifically exempt from income tax. The Income Tax Act makes provisions for specific inclusions in gross income and amounts deemed to be from a Namibian source. The total amount, in cash or otherwise, received by or accrued to any person from a source within, or deemed to be within, Namibia, excluding receipts of a capital nature. Calculation of taxable income Gross income Namibia has a source-based tax system, which means that income from a source within Namibia or deemed to be within Namibia will be subject to tax in Namibia, unless a specific exemption is available. ![]()
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