WINDHOEK—Finance and Public Enterprises Minister Iipumbu Shiimi has introduced the Income Tax Amendment Act of 2024 in the National Assembly, setting forth significant tax relief measures for individuals and non-mining companies in Namibia. This legislative proposal amends the tax structure to enhance economic activity and competitiveness.

According to Namibia Press Agency, the Amendment Act modifies Schedule 4 of the Income Tax Act of 1981, which governs the tax rates for individuals and non-mining corporate entities. This change includes raising the tax exemption threshold from N.dollars 50,000 to N.dollars 100,000, ensuring no tax liability for incomes below this new level. “In other words, the tax threshold is moved from 50,000 to 100,000, so anybody whose income is below that will not be liable for tax,” Shiimi explained during the tabling of the Bill.

The Minister also announced a reduction in the non-mining corporate tax rate from 31% to 30% starting next year, aimed at bolstering Namibia’s economic position relative to neighboring regions. “We are doing the amendments with the hope that we are going to inject additional money into the pockets of individuals and companies. But again, the aim is really to kick-start more economic activities so that we can create employment,” Shiimi added.

The tax adjustments are projected to funnel approximately N.dollars 646 million back to taxpayers, translating to an average tax relief of N.dollars 12,000 per person annually. Shiimi underscored the importance of timely tax filing, reminding individuals to file their returns by the June 30, 2024 deadline to benefit from the relief measures.

Shiimi also called on companies benefiting from the tax reductions to reinvest their savings into business expansion and job creation, particularly for the youth. “I trust that shareholders of companies that are going to benefit from this tax relief will reinvest the tax savings into their businesses, grow the economy and create more employment opportunities especially for our youth,” he concluded.