Incentives for Manufacturers

Government has introduced incentives that are largely concentrated on stimulating manufacturing in Namibia and promoting exports into the SADC region and to the rest of the world. SUMMARY OF SPECIAL INCENTIVES FOR MANUFACTURERS, EXPORTERS AND EPZ ENTERPRISES




Exporters of

Manufactured Goods

Export Processing

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 to 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 goods. Exempt
VAT Exemption on purchase and import of manufacturing machinery and equipment. Normal treatment Exempt
Stamp and 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 buildings written off at 20% 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% deduction from total cost. 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 programme.
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