Government has introduced incentives that are largely concentrated on stimulating manufacturing in Namibia and promoting exports into the SADC region and to the rest of the world.
SUMMARY OF SPECIAL INCENTIVES FOR MANUFACTURERS, EXPORTERS AND EPZ ENTERPRISES
|
|
Registered Manufacturers |
Exporters of Manufactured Goods |
Export Processing |
|
Eligibility and Registration |
Enterprises engaged in manufacturing. |
Enterprises that export manufactured goods whether produced in Namibia or not. |
Enterprises engaged in manufacturing, assembly, packaging or break-bulk and exporting mainly to outside of SACU markets. |
|
Corporate Tax |
Set at a rate of 18% for a period of 10 years, where after it will revert to the general prevailing rate. |
80% allowance on income derived from exporting manufactured goods. |
Exempt |
|
VAT |
Exemption on purchase and import of manufacturing machinery and equipment. |
Normal treatment |
Exempt |
|
Stamp and Transfer Duty |
Normal Treatment |
Normal treatment |
Exempt |
|
Establishment Tax Package |
Negotiable rates and terms by special tax package. |
Not eligible |
Not eligible |
|
Special Building Allowance |
Factory buildings written off at 20% in first year and balance at 8% for 10 years |
Not eligible |
Not eligible |
|
Transportation Allowance |
Allowance for land-based transportation by road or rail of 25% deduction from total cost. |
Not eligible |
Not eligible |
|
Export Promotion Allowance |
Additional deduction from taxable income of 25% |
Not eligible |
Not eligible |
|
Incentive for training |
Additional deduction from taxable income of between 25% and 75% |
Not eligible |
Substantial, issued by Government on implementation of approved training programme. |
|
Industrial Studies |
Available at 50% of cost |
Not eligible |
Not eligible |
|
Cash Grants |
50% of direct cost of approved export promotion activities. |
Not eligible |
Not eligible |