Namibia’s economy has kept on confronting noteworthy headwinds, with genuine yield shrinking by a further 1.4% in 2019. Having developed at a normal 5.3% somewhere in the range of 2010 and 2015, Namibia’s economy entered a downturn in 2016 and has since attempted to develop.
COVID-19 is set to unprecedentedly affect Namibia’s economy. With exchange to a great extent thought to a couple of nations and items, travel limitations and lower request will bring about a withdrawal in trades.
Serious drought conditions experienced in 2019 compelled horticultural yield and prompted a sharp decrease in harvests.
The decrease in precipitation likewise influenced the more extensive economy through lower power and water age, with repercussions on mechanical creation. These turns of events, alongside lower jewel and mineral creation because of marked down worldwide interest and falling costs, in a setting of much-required monetary union, have made testing conditions for development.
Main sectors of Industry
The mining business is probably the biggest sector in Namibia representing about 25% of the country’s income. In spite of a bountiful flexibly of minerals, just 3% of the populace is utilized in this segment.
The travel industry
The sectors adds to about 14.5% of the nation’s GDP and more than one million sightseers run the nation’s national parks and other traveler goals every year. As a famous ecotourism goal, Namibia’s economy is intensely dependent on its broad natural life.
The assembling area is the principle mainstay of the Namibian economy contributing over 20% of the GDP. This is regardless of the expansion of financed products from South Africa, a scattered populace, deficient nearby capital, and a semi-gifted work power.
A lion’s share of Namibia’s populace relies upon resource cultivating for its vocation with over a large portion of the populace utilized in the horticulture division. Just about 1% of the land in Namibia is arable.
Namibia has one of the most bountiful fishing grounds on the planet off the coast on the southern side.
Taxes in Namibia
Income earned by foreign companies from a source inside or considered to be inside Namibia will be liable to taxation in Namibia. In such cases, the foreign element must decide if it is committed to enroll a nearby element or branch. An unfamiliar organization is required to enroll a neighborhood organization (nearby auxiliary) or an outside organization (branch) in the event that it has built up a position of business in Namibia.
If Namibia has gone into a double tax agreement (DTA) with the nation where the unfamiliar organization lives, such substance might be available in Namibia in the event that it has set up a lasting foundation (PE) in Namibia. In the event that a PE exists, just the part of pay inferable from the PE will be liable to burden in Namibia.
Value-added tax is payable the available estimation of all products sold or imported. The standard rate is 15%.
Any sale/gift/seizure cession, award or other estrangement or move of responsibility for permit or right shall be included in gross income.
Wear and tear claims are deductible in equivalent portions more than three sequential expense a very long time for the securing of vehicles, airplane, seagoing art, hardware, actualizes, utensils and articles utilized for motivations behind exchange.
New enterprises that fare produce to nations outside the Southern African Customs Union (SACU) can fit the bill for EPZ status. The advantages of an EPZ venture are:
– Relief from corporate annual assessment, import obligations, VAT and stamp obligations however
excluding charge on representatives’ pay and retaining charge on profits; – Training awards of 75% of preparing costs;
– Foreigncurrency financial balances, free from trade control.
Investing in Namibia
Strong points of investing in Namibia include:
- Stable democracy
- Relatively developed road infrastructure
- Affordable construction permits
- Access to the Southern African Development Community market
- Duty-free access to Southern African Customs Union (SACU), the European Union and quota free access to the United States
Tax incentives for registered manufacturing enterprises:
– An additional income tax deduction of 25% of employment costs and approved training costs in respect of employees directly involved in a manufacturing process
– An additional income tax deduction of 25% for specified export marketing expenditure
– An additional income tax deduction of 25% for certain land-based transportation costs for the first 10 years of registration
– For exporters of goods manufactured in Namibia, an allowance equal to 80% of taxable income derived from the export of manufactured goods (excluding fish or meat products)