Namibia taxes foreign income from employment and trade at a rate of 15%. You can deduct 30% of the foreign income received during the year as an expense, but this may result in your Namibian tax liability if it reduces your taxable income below N$20 000.

Gross income earned by a Namibian resident from bona fide employment, in the normal course of business, is exempt from Namibia tax.

The exemption does not apply to foreign income which has been included as part of the gross income of an individual who has become a permanent resident in Namibia.

The amount allowed as a deduction must be shown on the employee’s Z30 form.

Foreign income received by certain individuals such as ambassadors, consul, heads of missions and members of their staffs, except for any remuneration or profit derived by him or her from employment or trade within Namibia.

Takeaway:

• You cannot claim a deduction if you have a permanent residence in Namibia.
• You can claim a deduction if you are a Namibian resident and are not employed or trading in Namibia.
• You can claim a deduction if you are a non-resident.

Conclusion

These are some of the most important points to remember when filing your Namibia income tax. It is important that you do not just focus on foreign income and its treatment by Namibian tax law, but also consider any other deductions or credits that could impact your overall taxes payable.