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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%