The Namibian Minister of Finance Calle Schlettwein presented his annual budget speech on 7 March 2018. Robyn Berger, Principal in Bravura’s Structured Solutions department, outlines the numerous tax changes that we proposed, highlighting those most likely to impact Bravura clients operating in Namibia:
• Phasing out the preferential tax treatment that is granted to a select few manufacturers;
• Introduction of a Special Economic Zone incentive with a phasing out of the existing Export Processing Zone Act;
• Introduce a 10% dividend tax levied on dividends paid to Namibian residents;
• Abolish the current practice of a conduit principle in the taxation of trusts;
• Taxation of worldwide income;
• Re- adjust the current tax brackets for Individual Income Tax, reduce the lower bracket tax rate from 18% to 17% and introduce new tax rates of 39% and 40% for individuals earning over N$1.5 million and N$2.5 million respectively;
• Introduce VAT on income of listed asset managers; and
• Introduce VAT on proceeds on the sale of shares or membership in a company owning commercial immovable property.
We wish to highlight that these are just proposals at this stage. There is likely to be a consultation process prior to such measures being enacted. Certain of these proposals are less likely to be implemented. We will send further updates as and when new developments arise.
Categories: Namibia, News, Taxation
Published: 15 March 2018