Corporate income tax in Namibia is 30%. A cut to 28% is planned from 1 April 2027. Mining companies, diamond mining and the oil and gas sector have higher sector rates. After the tax is paid, profit stays in the company or is paid to the owner as dividends, which are taxed once more.
In short
- The base corporate income tax rate is 30%; a cut to 28% is planned from 1 April 2027.
- Sector rates: mining 37.5%, diamond mining 55%, oil and gas 35%.
- Dividends to the owner are taxed separately: 10% for a resident, an owner with a residence permit or permanent residence, and a non-resident holding 25% or more.
- The tax base is reduced by expenses, depreciation and the director's salary; the company's auditor does the calculation.
Corporate income tax rates
| Sector | Rate |
|---|---|
| Base rate for companies | 30% |
| Base rate from 1 April 2027 (planned) | 28% |
| Mining companies | 37.5% |
| Diamond mining | 55% |
| Oil and gas sector | 35% |
The base rate applies to companies outside the listed sectors. Higher rates are set for the extraction of natural resources; the general overview of taxes is in the Namibia taxes guide for 2026.
How the tax is calculated: a simplified illustration
The rate is applied to the company's taxable profit. For illustration take a profit of N$500,000 and apply each rate from the table (a simplified calculation, without deductions or other payments):
| Rate | Corporate tax on N$500,000, N$ |
|---|---|
| 28% (planned from 1 April 2027) | 140,000 |
| 30% (base) | 150,000 |
| 35% (oil and gas sector) | 175,000 |
| 37.5% (mining) | 187,500 |
| 55% (diamond mining) | 275,000 |
When the 28% rate takes effect
The cut to 28% is planned from 1 April 2027. Until then the base rate of 30% applies, and calculations for the coming periods are sensibly made at that rate. When the decision takes effect, the company's auditor recalculates the tax burden; it is easier to follow the changes together with them.
What happens to profit next: dividend tax
The company itself pays corporate income tax. If the owner wants to receive money as dividends, a second tax is charged on payout: 10% for a resident, an owner with a residence permit or permanent residence, and a non-resident holding 25% or more. A detailed look at statuses is in dividend tax for foreigners.
A simplified illustration: profit of N$100,000, further payments not included.
| Step | Rate 30%, N$ | From 1 April 2027: 28% (planned), N$ |
|---|---|---|
| Company profit | 100,000 | 100,000 |
| Corporate income tax | 30,000 | 28,000 |
| Left after tax | 70,000 | 72,000 |
| Dividend tax 10% | 7,000 | 7,200 |
| The owner receives | 63,000 | 64,800 |
On this path tax is charged twice. The alternative is a director's salary, which is deducted from profit: comparing the two paths.
How the tax base is reduced
Corporate income tax is calculated on profit after the company's deductible expenses. According to local auditors' practice, three things affect the size of the base:
- Company expenses. Deductible items include medical insurance and leave for employees; an owner-director is also an employee: more about expenses.
- Depreciation. Assets are written off over 5 years at 20% a year: accelerated depreciation.
- The director's salary. The salary is deducted from profit as an expense: salary or dividends.
Other company payments
- Business Annual Duty — a yearly charge: N$6.5 per N$10,000 of share capital.
- Employer social payments on salaries: social security, occupational injury, vocational training (more).
- VAT — 15%.
Company taxes and payments in one table
| Payment | Rate | When it arises |
|---|---|---|
| Corporate income tax | 30% (28% planned from 1 April 2027) | on the company's profit |
| Dividend tax | 10% | when dividends are paid to a resident owner, an owner with a residence permit or permanent residence, or a non-resident holding 25% or more |
| Business Annual Duty | N$6.5 per N$10,000 of share capital | every year |
| Social security | 0.9%, capped at N$99 per employee per month | on employees' salaries |
| Occupational injury | 0.9–8% | on employees' salaries, depends on the line of business |
| Vocational training | 1% of payroll | if payroll exceeds N$1 million a year |
| VAT | 15% | on the company's transactions |
What to discuss with the auditor in the first year
- which corporate income tax rate applies in your industry;
- how to account for the 28% rate when planning for the period after 1 April 2027;
- how to write off assets: a car, an office, a production building;
- which expenses are deductible and which documents are needed;
- how to pay money to the owner: a director's salary or dividends;
- which employer social payments arise when hiring staff.
Who calculates the tax
In Namibia corporate income tax is usually calculated and filed by the company's auditor; an in-house accountant is not needed for this: an auditor instead of an accountant. Company registration is described in register a company in Namibia, and the conditions for an investor in doing business and investing in 2026.
This material is provided for reference. Data as of October 2026.
FAQ
What is the corporate income tax rate in Namibia?
The base rate is 30%. A cut to 28% is planned from 1 April 2027.
What are the rates in mining, diamonds and oil and gas?
Mining companies pay 37.5%, diamond mining is taxed at 55% and the oil and gas sector at 35%.
Are dividends taxed after corporate income tax?
Yes, when dividends are paid to the owner, dividend tax is charged: 10% for a resident, an owner with a residence permit or permanent residence, and a non-resident holding 25% or more.
How can the tax base be reduced?
It is reduced by company expenses (medical insurance and leave for employees), depreciation over 5 years at 20% a year and the director's salary. The company's auditor sets the conditions.
When does the 28% rate take effect?
The cut to 28% is planned from 1 April 2027; until then the base rate of 30% applies.
What is the corporate tax for an oil and gas company?
The oil and gas sector is taxed at 35%.
Who calculates corporate income tax?
Usually the company's auditor: the auditor calculates taxes and files returns, and an in-house accountant is not needed.
