For a foreign owner of a company in Namibia, dividend tax is 10% if the owner is a resident of the country, holds a residence permit or permanent residence, or is a non-resident holding 25% or more. The rate depends on the owner's status and shareholding, so it is worth determining the status before the first payout.
In short
- A resident of Namibia pays dividend tax of 10%.
- An owner with a residence permit or permanent residence pays 10%.
- A foreign non-resident holding 25% or more of the company pays 10%.
- Dividends are paid from profit after the company's corporate income tax (30%).
Dividend tax by owner status
| Owner status | Dividend tax |
|---|---|
| resident of Namibia | 10% |
| owner with a residence permit or permanent residence | 10% |
| foreign non-resident holding 25% or more | 10% |
| non-resident holding less than 25% | 20% |
The rates come from the practice of an auditor working in Namibia. The shareholding threshold is "25% or more": exactly 25% falls under the lower 10% rate.
Residents, residence permits and permanent residence
A resident of Namibia and an owner with a residence permit or permanent residence pay dividend tax at the same rate, 10%. So a residence permit affects the owner's tax picture. The types of permits are described in residence permits in Namibia.
Non-residents and the 25% threshold
For non-residents the rate depends on the shareholding: at 25% or more the tax is 10%. Withholding tax is tax deducted at the moment of payment. Besides dividends, it applies to other payments to non-residents:
| Payment to a non-resident | Rate |
|---|---|
| Royalties | about 10% |
| Management and consulting services | 10% |
| Directors' fees | 25% |
| Artists' fees | 25% |
How dividends fit into the overall picture
Dividends are paid from profit on which the company has already paid corporate income tax: 30% (a cut to 28% is planned from 1 April 2027). For the rates, see corporate income tax in Namibia.
| Step | Amount, N$ |
|---|---|
| Company profit | 100,000 |
| Corporate income tax 30% | 30,000 |
| Left for dividends | 70,000 |
| Dividend tax 10% | 7,000 |
| The owner receives | 63,000 |
Tax is charged twice: in the company and on payout to the owner. According to local auditors' practice, a director's salary is in many cases more efficient than this path because it is deducted from profit: salary or dividends.
Example: dividends of N$70,000
A simplified illustration: after corporate income tax N$70,000 is left in the company, and an owner entitled to the 10% rate receives dividends. Dividend tax is N$7,000 and the owner receives N$63,000. For an owner with a residence permit or permanent residence, a resident of Namibia and a non-resident holding 25% or more the figures are the same.
Comparison with a director's salary
| Criterion | Dividends | Director's salary |
|---|---|---|
| How many taxes | two: the company's corporate income tax and dividend tax | one: the owner's personal income tax |
| How it is deducted | nothing is deducted from profit | the salary is deducted from profit as an expense |
| Rate for the owner | 10% for the statuses in the table above | the personal income tax scale from 0% to 37% |
| If the owner is a non-resident | the rate depends on the shareholding | directors' fees of non-residents are taxed at 25% |
Steps before the first payout
- Determine the owner's status: resident, owner with a residence permit or permanent residence, non-resident.
- Check the size of the shareholding: the 25% threshold.
- Make sure corporate income tax has been charged on the profit being distributed.
- Calculate dividend tax at the rate for your status.
- Agree the payout with the company's auditor.
Terms
- Resident — an owner who is considered a resident of Namibia; non-resident — a foreigner without that status.
- Dividend tax — tax on a payout to the owner from the company's profit.
- Withholding tax — tax deducted at the moment of a payment to a non-resident.
- Corporate income tax — the tax the company pays before dividends are paid out.
What a foreign owner should consider
- determine the owner's status: resident, owner with a residence permit or permanent residence, non-resident;
- check the size of the shareholding: the 25% threshold;
- choose how to take money out of the company: salary or dividends;
- discuss the calculations with the company's auditor in advance: an auditor instead of an accountant.
Company registration by a foreigner is described in register a company in Namibia. For the general overview of taxes, see Namibia taxes in 2026.
This material is provided for reference. Data as of October 2026.
FAQ
What is the dividend tax for a resident of Namibia?
A resident of Namibia pays dividend tax of 10%.
What is the dividend tax for an owner with a residence permit or permanent residence?
An owner with a residence permit or permanent residence pays 10%.
What does the 25% threshold mean?
A foreign non-resident holding 25% or more of the company pays dividend tax of 10%; the rate depends on the shareholding.
Which profit are dividends paid from?
From profit after the company's corporate income tax: 30%, with a cut to 28% planned from 1 April 2027.
Is it possible to do without dividends?
An owner can work as a director or senior manager and receive a salary: it is deducted from profit, and tax is calculated on the personal income tax scale.
