Finance minister Ipumbu Shiimi said Namibia will charge non-resident shareholders 10% from January 1, 2026, to address the existing disparity in the investment arena.
Shiimi also said to improve competitiveness against regional peers and keep up with global corporate income tax developments; the non-mining company tax rate will be reduced further to 28% during FY2026/27.
He said this reduction would be undertaken to maintain tax neutrality and broaden the corporate income tax base by replacing the 3:1 thin capitalisation ratio with a 30% limit on interest deductions and capping assessed losses carried forward at five years for normal companies and 10 years for companies operating in the natural resources sectors.
“As previously communicated, the minister said two percentage points would reduce the non-mining company tax rate during the medium-term expenditure framework.
“Accordingly, the tax rate will be reduced to 31% effective January 1, 2024, with a further reduction to 30% taking effect on January 1, 2025,” Shiimi said.
The minister has increased the mines and energy ministry’s 2024/25 budget by 50% to N$381.9 million.
Shiimi said the increased allocation is meant to improve capacity at the ministry, especially in the Petroleum Affairs Directorate, in light of the upsurge in exploration activities in the Orange basin.
Furthermore, Shiimi said the ministry’s development budget has more than doubled, with N$131 million to fast-track rural electrification and improve access to electricity countrywide.
