Reduced tax thresholds welcomed

The Namibia Investment and Promotion Development Board (NIPDB) has welcomed revisions to the threshold for income tax on individuals and the envisaged reduction of non-mining corporate tax rates, saying it will spur economic activity.This follows the tabling of the budget by finance minister Ipumbu Shiimi yesterday.The revised thresholds for income tax mean that individuals earning N$100 000 or less will no longer be required to pay income tax.“The increase in the tax threshold from N$50 000 to N$100 000 and an inflation adjustment of 2.5% mean that many Namibians, especially those in the lower income brackets, will be able to have more disposable income, which consequently contributes to economic growth,” the NIPDB said.The reduction in corporate tax rates for micro, small and medium enterprises (MSMEs) would also enable the growth of small business entities.“A reduced corporate tax rate for micro, small, and medium enterprises (MSMEs) as defined from 32% to 28% shows the government’s commitment to encourage the growth of these entities. The introduction of a dividend tax at 10%, aligned with regional benchmarks, will broaden the tax base and eventually reduce the tax burden currently heavily carried by individuals through pay as you earn (PAYE),” NIPDB said.“An increase in the value added tax (VAT) threshold from an annual turnover of N$500 000 to N$1 million will not only ease the administrative burden on small businesses but will also increase their growth by enabling them to compete effectively and play a pivotal role in economic development,” it added.

Reduced tax thresholds welcomed

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Namibian Sun 2025-07-18

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Reduced tax thresholds welcomed

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Namibian Sun 2025-07-18

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