Tax First Newsletter

Providing you with informed commentary on current developments in the local tax and business arena.

Tax First Newsletter | July 2024

Tax Considerations when investing in Namibia

With Namibia’s abundant renewable energy resources, so much so that we are considered to be the “green energy hub”, our country has great potential for many investors.

When investing in a project or business vehicle within Namibia, foreign investors should be cautious to properly consider the income tax implications thereof, as unforeseen taxes or potential tax changes can cause the business model to become more expensive, or in some cases even unfeasible.

Investors must understand the type of income tax system Namibia uses. Unlike most countries using a ‘residency-based’ basis of taxation (such as South Africa), Namibia has a ‘source basis’ of taxation. Where most countries have the term ‘permanent establishment’ defined within their local tax legislation, this term is not defined in our Income Tax Act. However, the term is defined within the double taxation agreements which Namibia has concluded with a few countries.

Read the full article in the pdf below.

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