In Namibia a company's assets can be written off at an accelerated rate: over 5 years at 20% a year. This is how a car, an office or a production building is written off, depending on the purchase. Accelerated depreciation is part of local auditors' practice alongside company expenses and the director's salary.
In short
- A company's assets are written off over 5 years at 20% a year.
- This covers a car, an office or a production building, depending on the purchase.
- Over 5 years the whole value of the asset is written off: the remaining value becomes zero.
- How the write-off is reflected in corporate income tax (30%) is calculated by the company's auditor.
What accelerated depreciation is
Depreciation is the gradual write-off of an asset's value. Usually the period depends on the asset's service life, but Namibia has an accelerated procedure: the whole value is written off in equal parts over 5 years, 20% a year. Instead of a long write-off, the company moves the cost of the purchase into its books faster.
Write-off table by year
A simplified illustration for an asset worth N$1,000,000: each year 20% is written off, that is N$200,000.
| Year | Written off (20%), N$ | Total written off, N$ | Remaining value, N$ |
|---|---|---|---|
| 1 | 200,000 | 200,000 | 800,000 |
| 2 | 200,000 | 400,000 | 600,000 |
| 3 | 200,000 | 600,000 | 400,000 |
| 4 | 200,000 | 800,000 | 200,000 |
| 5 | 200,000 | 1,000,000 | 0 |
What is written off
According to the auditor's practice, the accelerated procedure applies to company assets:
- a car;
- an office building;
- a production building.
Which option fits depends on the purchase; the company's auditor determines it. For illustrative amounts the write-off looks like this (a simplified illustration):
| Asset (illustrative value) | Written off per year (20%), N$ | Write-off period |
|---|---|---|
| Car, N$500,000 | 100,000 | 5 years |
| Office building, N$2,000,000 | 400,000 | 5 years |
| Production building, N$3,000,000 | 600,000 | 5 years |
Several assets together
A simplified illustration: a company bought a car for N$500,000 and an office building for N$2,000,000 in the same year.
| Year | Car, N$ | Building, N$ | Total written off in the year, N$ |
|---|---|---|---|
| 1 | 100,000 | 400,000 | 500,000 |
| 2 | 100,000 | 400,000 | 500,000 |
| 3 | 100,000 | 400,000 | 500,000 |
| 4 | 100,000 | 400,000 | 500,000 |
| 5 | 100,000 | 400,000 | 500,000 |
Over five years the whole value of both assets is written off: N$2,500,000.
How depreciation relates to taxes
Corporate income tax is 30% (a cut to 28% is planned from 1 April 2027). Accelerated depreciation is one of the tools auditors use to optimise a client's taxation. How the write-off affects tax in your case is calculated by the auditor: an auditor instead of an accountant. More on the tax itself: corporate income tax in Namibia.
What depreciation combines with
- Company expenses: medical insurance and leave for employees (more);
- The director's salary: deducted from profit as an expense (salary or dividends);
- General overview of taxes: Namibia taxes in 2026.
Questions for the auditor before buying
- Which category the asset you are buying belongs to.
- From which moment the write-off starts.
- Which purchase documents to keep.
- How the write-off will affect corporate income tax in the coming years.
Registering the company that will own the assets is described in register a company in Namibia.
This material is provided for reference. Data as of October 2026.
FAQ
How are a company's assets written off in Namibia?
At an accelerated rate: over 5 years at 20% a year.
Which assets can be written off under this procedure?
A car, an office or a production building, depending on the purchase.
How much is written off in the first year?
20% of the value: for example, N$200,000 for an asset worth N$1,000,000.
Who calculates depreciation?
The company's auditor: the auditor calculates taxes, files returns and accounts for the write-off.
Does depreciation affect corporate income tax?
Accelerated depreciation is part of tax optimisation practice; how it applies to your company is determined by the auditor.
