Capital gains tax (CGT) is a tax on the profit that you make when you sell your assets, like shares or property.

CGT was introduced in 2006 to replace estate duty.

CGT was introduced in 2006 to replace estate duty. The rate is 25%. The following assets are subject to CGT:

• non-residential immovable property, such as land and buildings
• shares in a company or unit trust (other than those taxed on a separate basis)

The capital gains tax rates in Namibia are as follows:

The capital gains tax rates in Namibia are as follows:

• 20% for immovable property situated in Namibia; and
• 25% for the disposal of a non-residential immovable property by a person resident in Namibia at any time during the period of six months preceding the date of disposal, or at any time before that date if such person had been an individual who was resident outside Namibia immediately prior to his or her departure from this country (section 6A(1) Income Tax Act).

0%-75% of capital gain included in taxable income at the taxpayer’s marginal rate; and

Namibia’s tax rates are progressive, meaning that higher earners pay a greater percentage of their income to the government. Taxable income is the amount of money left after deductions and allowances are taken into account. The personal allowance in Namibia is N$60 000 per annum for individuals earning below a certain threshold (or lower than N$300 000 if you earn above the threshold).

Tax brackets for the 2019/2020 tax year are as follows:

• 0% – 75% capital gain included in taxable income at taxpayer’s marginal rate;
• 15% – 20% on dividends up to N$100 000;
• 21%-30% on dividends between N$100 000 and N$1 000 000;

25% on the first N$500,000 of any capital gain; and

The first N$500,000 of any capital gain is not subject to CGT tax. This means that if you sell your property for more than the purchase price, only 25% of your profit will be taxed by CGT.

CGT is charged at a rate of 25% of any gain on disposal of a non-residential immovable property.

If a property is sold for more than it was bought for, CGT will be charged at a rate of 25% of any gain on disposal of a non-residential immovable property.

The rate of tax is payable on the first N$500,000 of any capital gain. Anything in excess of N$500,000 is taxed at the maximum marginal rate (currently 28%).