SEPTEMBER 2024 – NAMIBIA
2024–2025 INCOME TAX AMENDMENTS SIGNED INTO LAW
It is important that employers note the following:
Income Tax Amendment Act, 2024 promulgated After a long waiting period, the Namibian President Nangolo Mumbu signed the Income Tax Amendments Act, 2024 into law on 13 September 2024. The changes are outlined in Government Gazette No. 8842 and were published on 16 September 2024.
These amendments to various fiscal legislation implement the tax relief measures announced during the National Budget presentation on 28 February 2024. The revised statutory tax rates take effect from 1 March 2024.
This adjustment means that all individual taxpayers are now exempt from paying tax on the first N$100,000 of their income. Consequently, PAYE has been over-deducted from all employees earning an annual income above N$50,000 during the 6-month period from 1 March 2024 to 31 August 2024.
Because the tax amendments were enacted mid-financial year, the standard process would require employees to wait until the end of the tax year (28 February 2025 to 30 June 2025) to claim the over-deducted PAYE from the Namibia Revenue Agency (NamRA) when filing their 2024/2025 annual tax returns.
However, the Ministry has proactively implemented measures to expedite taxpayer refunds. In line with the gazetting of the Amendment Act, the Ministry issued General Notice (09/2024), authorising and instructing employers to reimburse employees for the PAYE over-deducted between 1 March 2024 and 31 August 2024. Employers are to recover the reimbursed PAYE by deducting it from the monthly employee tax payments due to NamRA between 1 October 2024 and 28 February 2025.
In addition, the Minister of Finance and Public Enterprises Iipumbu Shiimi issued a ministerial statement on 17 September 2024 to provide additional clarity, specifically on the implementation of the Income Tax Amendment Act, 2024, and in particular the adjustments pertaining to the increase of the threshold for income tax on individuals from N$50,000 to N$100,000. It is the responsibility of employers to reimburse employees. In cases where employers lack the necessary funds to refund employees, especially those who fall within the revised tax-exempt threshold of N$100 000 annual remuneration, they may claim refunds directly from the Namibia Revenue Agency (NamRA) under the revised tax threshold.
Employers should note that this action is not mandatory, as stated in General Notice (09/2024). In exceptional cases where employers do not have sufficient employee tax payable to deduct and refund the employees, these employees will need to claim their refund when submitting their 2025 tax return between 1 March and 30 June 2025. Employees who changed jobs during the tax year and are no longer with their previous employers must claim any refunds when filing their 2025 income tax return by 30 June 2025.
The following tax measures will affect payroll for the 2024/2025 tax year:
- Personal income tax bracket adjustments
- The annual tax-free threshold to increase from N$50 000 to N$100 000
| Taxable Income (N$) | Rates of tax 2024/2025 |
| 0 – 100,000 | 0% |
| 100,001 – 150,000 | 18% of the excess over N$100,000 |
| 150,001 – 350,000 | N$9,000 + 25% of the excess over N$150,000 |
| 350,001 – 550,000 | N$59,000 + 28% of the excess over N$350,000 |
| 550,001 – 850,000 | N$115,000 + 30% of the excess over N$550,000 |
| 850,001 – 1,550,000 | N$205,000 + 32% of the excess over N$850,000 |
| 1,550,001 and above | N$429,000 + 37% of the excess over N$1,550,000 |
To view the Income Tax Amendment Act, 2024, follow the link.
To view the ministerial statement by the Minister of Finance and Public Enterprises, follow the link.
