Mining tax regime

DescriptionRate/Remark
Foreign Ownership allowed100%
Compulsory government shareNo
Foreign Exchange ControlsLimited
Tax stability agreementsNone
Corporate tax rates32% – 55%
Corporate tax for non-mining companies32%
Corporate tax for diamond mining55%
Corporate tax for non-diamond mining37.5%
Royalties on rough diamonds10%
Royalties on rough emeralds, rubies & sapphires10%
Royalties on unprocessed dimension stone5%
Royalties on gold, copper, Zinc & other base metals3%
Royalties on Semi-precious stones2%
Royalties on Nuclear fuel minerals3%
Royalties on Industrial Minerals (flourspar, salt, etc)2%
Royalties on non – nuclear fuel materials (coal)2%
Royalties on oil/gas5%
Export Levy (See appendix 2)
Corporate tax on oil/gas35%
Tax holidaysNone
Deduct exploration costs (when mineral discovery progresses to mine development)Yes, 100% in first year
Deduct development costs yes, 100% in first three years
Ring fencingYes (oil and gas)
Forwarding carry of lossesYes, indefinitely
DepreciationYes, 33.3% straight
Capital gains tax0%
Value added tax 15%
Non Resident Shareholder’s Tax (NRST)20%
NSRT- If a Non- resident recipient of dividends is a company which holds at least 25% of the capital of Namibian company paying the dividend.10%
Withholding tax10%
PAYESee Appendix 1
Land tax (on valuation)Namibian Citizens – 0.75%, Foreugn Nationals 1.5%
Provincial taxesNone
Municipal taxesServices (Rates on Services)
Exploration & Mining Licence FeesYes, schedule available from office of the mining Commissioner
Surface rentTo landowner, on mutual compensation agreement
Mineral ownershipVested in the State
Training Levy1% of payroll (Total Cost to Company)
Allowable deduction for calculating taxable income when a mine comes into production:
Pre-production exploration, development costs, dividends, capital equipment, royalties, export levies, operating costs, loan interest, post-production exploration, withholding taxes, import duties, and payroll taxes.

Appendix 1 (PAYE Table)

Taxable Income (N$) Rates of tax for year of assessment ending 28 February 2014 (N$)
0 – 50,000 Not taxable
50,001 – 100,000 18% for each N$ above 50,001
100,001 – 300,000 9,000 + 25% for each N$ above 100,001
300,001 – 500,000 59,000 + 28% for each N$ above 300,001
500,001 – 799,999 115,000 + 30% for each N$ above 500,001
800,000 – 1,500,0001 205,000 + 32% for each N$ above 800,001
Above 1,500,0001 429,000 + 37% for each N$ above 1,500,001

Appendix 2 (Export Levy Table)

Main Product Specific Products EU General
Lithium Lithium Carbonates Free 2.0%
Diamond Pure unsorted rough diamonds 2.0% 2.0%
Sorted by size 1.50% 1.50%
Sorted & grazed 1.0% 1.0%
Cut & polished 0.50% 0.50%
Product of jewellery etc. 0% 0%
Zinc Crushed Ore 2% 2%
Zinc Concentrate 1.00% 1.00%
Zinc Sheets 0.50% 0.50%
Zinc Ingots 0.25% 0.25%
Steel Products 0.00% 0.00%
Lead, Other metals Lead Concentrate 1.00% 1.00%
Uranium Uranium oxide/yellow 0.25% 0.25%
Copper CU Concentrate 1.00% 1.00%
Gold Gold Bullion 1.00% 1.00%
Manganese Manganese Concentrate 1.00% 1.00%
Fluorspar Acid Grade Fluorspar Acid Grade Fluorspar 0.25% 0.25%
Other Metals. Precious and Semi – precious stones Pure metal stone 0.25% 0.25%
Dimension Stones Stone blocks 2.00% 15.00%
Marbles Stone blocks 2.00% 15.00%
Tantalum Unwrought tantalum, including bars and rods obtained simply by sintering; powders Free 2.00%
Gas Unrefined gas of all types 1.50% 1.50%
Refines gas of all types 0.00% 0.00%
Crude Oil Unrefined crude oil of all types 1.50% 1.50%
Refines oil of all types 0.00% 0.00%