Investment incentives in Namibia apply equally to domestic and foreign investors. The major goals of incentives are employment creation, industrial and economic development, exports and to uplift previously disadvantaged people. There are no general incentives but rather only industry specific incentives as below.
1. Free Trade Zones
The Namibian Government affords Export Processing Zone (EPZ) status to companies.
- Exempt from all taxes and duties in Namibia.
- Allowed to hold foreign currency accounts in local banks.
- EPZ enterprises enjoy industrial calm as no strikes or lock-out are allowed in the EPZ- regime
- Companies operating under the regime are free to locate their operations anywhere in Namibia
- Through the Offshore Development Company, EPZ enterprises also have access to factory facilities rented at economical rates
The following expenditure, which is already fully deductible for tax purposes, is allowed as an additional deduction 25%from income:
- Research on the marketing of goods in a foreign country;
- Advertising and soliciting of orders in a foreign country, including attendance of approved foreign trade exhibits and outward trade missions, economy air fare, local travel and accommodation and exhibition costs;
- Provision of samples or technical information to prospective customers in a foreign country;
- Bringing prospective customers from a foreign country to Namibia, including economy airfares and accommodation;
- Preparation or submission of tenders or quotations in respect of goods to be exported to a foreign country
- Expenditure incurred to finalize contractual agreements
- The appointment of agents in foreign countries
- Registered manufacturers
- Include the export incentives as above
- Additional deduction on training expenses and wages 25%
- Specific Industries
- Special building allowance – buildings written off 20% in first year of use and balance at 8% for ten years
- 80% allowance on taxable income derived from the export of manufactured goods (excluding fish and meat) whether produced in Namibia or not.
- 50% abatement on taxable income for 5 years and linear phasing out of abatement over following 10 years