Estate duty in Namibia is a tax imposed on the heir of a deceased person’s estate. The amount of estate duty payable depends on the value of the deceased person’s property and whether they were survived by a spouse or dependent children. If the deceased person was not survived by a spouse or dependent children, their entire estate will be subject to estate duty.

how does it work?

The amount of estate duty payable in Namibia depends on the value of the deceased person’s property and whether they were survived by a spouse or dependent children. Estates valued at less than N$1 million are exempt from estate duty, while those valued at more than N$1 million are subject to a sliding scale of rates ranging from 2% to 10%. Surviving spouses and dependent children are also entitled to an exemption from estate duty.

how much is estate tax in namibia

In Namibia, the Estate Duty Act empowers the Commissioner of Taxes to raise assessments against estates and persons who have died. It is one of the oldest taxes in Namibia that has remained unchanged since 1983 when it was introduced under section 37(1)(a) of the Income Tax Act 1962. As per section 37(2) read with section 39 (2) read by virtue of section 78 (1)(a), every person liable for duty shall be entitled to deduct from his total income for each calendar year such amount as may be prescribed therefor by regulations made by the Minister on recommendation from Treasury

Guide to Estate Duty

Estate duty is a tax on the value of assets transferred from one person to another upon death. It is therefore levied on any form of inheritance or gift, including life insurance payouts and personal property bequests.

Estate duty was introduced in Solomon T Seasep’s estate in 1908 and has been in place ever since. The amount you pay depends on the value of your estate at the time of your death, which includes all property you own (for example, land, buildings) as well as debts owed by yourself or your business and other financial assets such as investments held through banks and stockbrokers.

Who is liable?

Every person who at the time of his or her death was or should have been resident in Namibia, or had assets situated in Namibia, is deemed to have an estate that is liable for estate duty. The deceased’s estate will include all property (real and personal) belonging to the deceased at the time of their death. It also includes any property right which may accrue under a will or trust unless a contrary intention appears from the instrument creating it.

Every person who at the time of their death was or should have been resident in Namibia or had assets situated in Namibia is deemed to have an estate.

If you are not a resident of Namibia but have assets in Namibia, your estate will be liable for estate duty.

• For every person who at the time of their death was or should have been resident in Namibia or had assets situated in Namibia is deemed to have an estate (s7(1)).
• The value of all immovable property includes any interest therein, whether held directly or indirectly. This includes an interest acquired by way of gift, succession or otherwise (s7(2)).

In terms of liability,

The raising of an assessment means that any individual who is an Executor appointed in terms of a Deceased’s last Will & Testament is compelled to pay up within 90 days from date of assessment issued, failing which interest will be charged on what is owed at 20% per annum for periods where payment remains outstanding beyond 90 days from date of assessment. The Executor can also be held personally liable for non-payment.

• In order to prevent this situation from occurring it is important that you establish whether or not you are liable for Estate Duty or not and ensure that all steps are taken to avoid incurring such debts; including appointing legal professionals who are knowledgeable about Namibian Estate Law and can guide you through the process.