Interest accruing from stocks and securities, including treasury bills, issued by the Namibian government, regional and local authorities in Namibia, are not subject to Withholding Tax on Interest. Withholding Tax on Interest is a final tax levied at a rate of ten percent (10%) on interest accruing to or in favor of any person (other than a Namibian company) from a Namibian banking institution or a unit trust scheme registered in Namibia. The rate may be reduced in terms of a double tax agreement Withholding Tax on Interest If the owner of the company holds directly or indirectly at least twenty-five percent (25%) of the capital of the company paying the dividends the rate is reduced to ten percent (10%). Non-Resident Shareholders Tax is a final tax levied at a rate of twenty percent (20%) on the amount of the dividend declared. Non-Resident Shareholders Tax is also applicable to dividends declared by a Namibian company to an entity where more than fifty percent (50%) of the shares of that entity is directly or indirectly held for the direct or indirect benefit of a company not managed or controlled in Namibia.

Non-Resident Shareholders Tax (NRST)Дividends declared by a Namibian company to a shareholder not ordinarily resident, doing business or managed or controlled in Namibia, are subject to Non-Resident Shareholders Tax. This means that the transaction subject withholding tax will not be included into taxable income again.ДЇor example, where Withholding Tax on Interest was charged, that interest will not be included into the taxable income of an individual again. You will notice that a number of these withholding taxes are defined as being a final tax. Withholding taxes are applicable to certain types of payments made to Namibian and non-Namibian residents and applies to natural persons or business. In case you find yourself wondering about the nature and types of withholding tax in Namibia, there are currently five (5) types: The tax is thus withheld or deducted from the income due to the recipient and only the net amount paid to the recipient, and the tax amount paid to government by the payer. What is withholding tax? Tax withholding, also known as tax retention, is tax paid to the government by the payer of the income rather than by the recipient of the income.

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