Investment Incentives

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Namibia has a highly competitive incentive and fiscal regime which adds to its attractions for foreign investors, as well as creating an ideal business environment. The corner stones of this regime are the Foreign Investment Act and its provision for a Certificate of Status Investment, the Special Incentives for Manufactures and Exporters and the Export Processing Zone Incentives.

The Foreign Investment Act led to the creation of the Namibian Investment Center within the country’s Ministry of Trade and Industry, designed to facilitate the process off investment. The Act provides for:

  • Liberal foreign investment conditions;
  • Equal treatment of foreign and local investors;
  • Openness of all sectors of the economy to foreign investment;
  • Full protection of investments;
  • The granting of a Certificate of Status of Investment (CSI).

Special Incentives for Manufacturers, Exporters and EPZ Enterprises

Registered Manufactures
Exporters of Manufactured Goods
Export Processing Zone Enterprises
Eligibility and Registration
Enterprises engaged in manufacturing, Application to the Ministry of Trade and Industry and approval by the Ministry of Finance Enterprises that export manufactured goods whether produced in Namibia or not. Application and approval by the Ministry of Finance Enterprises engaged in manufacturing assembly packaging or break-bulk and exporting mainly outside of SACU markets. Application to the EPZ. Committee through the ODC or EPZMC.
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 good Exempt
VAT
Exemption on purchase and import of manufacturing machinery and equipment. Normal treatment Exempt
Stamp & 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 building written off at 30% 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% 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 program
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