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To help with your payroll processes, take a look at the 


Source basis of Income Tax

Normal tax is levied on taxable income of companies, trusts and individuals from sources within or deemed to be within or from Namibia.


Individual Income Tax

All individuals (incl. deceased estates and trusts) other than companies.

2018 - 2021

Employees’ fringe benefits

Fringe benefits are taxable. The taxable value of fringe benefits is determined in terms of a schedule to the income tax tables.

Housing loans and mortgage subsidies

Housing loans provided to employees at a subsidised rate are taxable to the extent that the interest rate payable by the employee is less than 12% per annum (p.a.). The taxable value of housing benefits comprising free or subsidised housing is determined with reference to the location and size of the housing, as indicated in the following table:

The taxable value of housing benefits granted, in terms of housing schemes approved by Inland Revenue, is reduced by one-third thereof (the reduction increases based on a formula for remuneration below N$30 000 p.a.).

Loans (other than housing loans)

The taxable value of interest-free or subsidised loans that are not utilised for further study by the employee or exceed      

N$3 000 p.a., is 12% p.a. of the loan amount less interest actually paid on the loan.

Motor Vehicles

Interest Income


Exempt interest income earned by individuals and trusts from: 


  • Deposits with Nampost Savings Bank

  • Stock or securities (including Treasury Bills) issued by the Government of Namibia, or any regional council or local authority in Namibia (also available to companies not carrying on business in Namibia)


Withholding tax

10% on interest received from Namibian banks and unit trusts


Medical Aid

Contributions to medical aid funds and actual medical costs are not deductible by employees for income tax purposes.


Social Security

Social security is payable on a 50:50 contributions from employers and employees. The contributions are calculated at 0.9% of earnings, with a minimum monthly contribution of N$2.70 and a maximum monthly contribution of N$81.00 by each.

Value-Added Tax


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