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Mining Tax Regime

Description

Rate/Remarks

Foreign ownership allowed

100%

Compulsory government share

No

Foreign exchange controls

Limited

Tax stability agreements

None

Corporate tax rates

32% - 55%

Corporate tax for non-mining companies

32%

Corporate tax for diamond mining

55%

Corporate tax for non-diamond mining

37.5%

Royalties on rough diamonds

10%

Royalties on rough emeralds, rubies & sapphires

10%

Royalties on unprocessed dimension stone

5%

Royalties on gold, copper, zinc & other base metals

3%

Royalties on Semi-precious stones

2%

Royalties on Nuclear fuel minerals

3%

Royalties on industrial minerals (fluorspar, salt, etc)

2%

Royalties on non-nuclear fuel materials

2%

Royalties on oil/gas

5%

Export Levy

See Appendix 2

Corporate tax on oil/gas

35%

Tax holidays

None

Deduct exploration/development costs

Yes, 100% in first year

Ring fencing

Yes (oil and gas)

Forward carry of losses

Yes, indefinitely

Depreciation

Yes, 20 & 4 – 33.3 straight line, see text

Capital gains tax

0%

Value added tax

15% (see text)

Non Resident Shareholder’s Tax (NRST)

20%

NRST-if a Non-resident recipient of dividends is a company which holds at least 25% of the capital of the Namibian company paying the dividend.

10%

Withholding tax

10%

PAYE

See Appendix 1

Land tax (on valuation)

Namibian citizens - 0.75%, Foreign Nationals – 1.5%

Provincial taxes

None

Municipal taxes

Services(Rates on Services)

Exploration & Mining Licence Fees

Yes, schedule available from the office of the Mining Commissioner

Surface rent

To landowner, on mutual compensation agreement

Mineral ownership

Vested in the State

Training Levy

1% of payroll

Allowable deduction for calculating taxable income: Pre-production exploration, development, dividends, capital equipment, royalties, operating costs, loan interest, value added tax, post-production exploration, withholding taxes, importing duties, and payroll taxes.

Appendix 1 (PAYE table)

Taxable Income (N$)

Rates of tax for year of assessment ending 28 February 2014 (N$)

0 – 50,000

Not taxable

50,001 – 100,000

18% for each N$ above 50,001

100,001 – 300,000

9,000 + 25% for each N$ above 100,001

300,001 – 500,000

59,000 + 28% for each N$ above 300,001

500,001 – 800,000

115,000 + 30% for each N$ above 500,001

800,001 – 1,500,000

205,000 + 32% for each N$ above 800,000

Above 1,500,0001

429,000 + 37% for each N$ above 1,500,001

 

Appendix 2 (Export Levy table) 

Main Product

Specific product

Export Levy Rate

Diamonds

Pure unsorted rough diamonds

2%

 

Sorted by size

1.5%

 

Sorted & graded

1%

 

Cut & polished

0.5%

 

Products of jewellery

0%

Zinc

Crushed ore

2%

 

Zinc concentrate

1%

 

Zinc sheets

0.5%

 

Zinc ingots

0.25%

 

Steel products

0%

Lead, other metals

Lead concentrate

1%

Uranium

Uranium oxide/yellow cake

0.25%

Copper

Copper concentrate

1%

Gold

Gold bullion

1%

Manganese

Manganese concentrate

1%

Fluorspar

Acid grade fluorspar

0.25%

Other metals, precious and semi-precious stones

Pure metal/stone

0.25%

Dimension stones

Stone blocks

2%

Marbles

Stone blocks

2%

Gas

Unrefined gas of all types

1.5%

 

Refined gas of all types

0%

Crude oil

Unrefined oil of all types

1.5%

 

Refined oil of all types

0%