The government is preparing to implement a new set of tax measures under the Income Tax Amendment Bill of 2025, which is expected to be passed into law before the end of the financial year.
Finance Minister Ericah Shafudah said the amendments form part of broader reforms aimed at improving fairness, competitiveness, and revenue collection within Namibia’s tax system.
“The Income Tax Amendment Bill 2025, which includes ten proposals previously announced, has been presented for legislative consideration and is anticipated to be passed into law by the end of this financial year,” Shafudah said during the FY2025/26 Mid-Year Budget Review Statement on Tuesday.
She said the proposed measures aim to modernise Namibia’s tax framework and promote equity across income groups.
“Corporate tax reforms are also slated to feature a 20% rate for small and medium-sized enterprises, a rate reduction to 28% for non-mining businesses, and the establishment of a 20% rate for Special Economic Zone enterprises. The alignment of taxation of long-term insurers to other non-mining business forms part of the reforms,” she said.
Shafudah added that the government is poised to implement a series of reforms designed to enhance both competitiveness and fairness within the economy.
“These initiatives align with global trends that advocate for increased tax-to-GDP ratios to facilitate economic growth and promote reduced inequality through a progressive taxation framework,” she said.
The minister confirmed that the Ministry of Finance is developing a Medium-Term Revenue Strategy to guide future policy and administrative adjustments.
“In conjunction with these reforms, the Ministry is developing a comprehensive Medium-Term Revenue Strategy aimed at guiding the tax reform process. This strategy will address policy, administrative, and legal considerations, while also focusing on mobilising resources for development,” Shafudah said.
She noted that additional tax proposals will be announced in the main budget statement scheduled for February 2026.
“We continue to review the ease of tax compliance. Good standing certificates are a necessary tool in tax compliance. To reduce the cost of compliance to taxpayers and tax administration, the validity period of good standing certificates will be revised to one year for individuals and small and medium enterprises, and to six months for other taxpayers,” she said.
Shafudah said powers granted under the Income Tax Act to freeze bank accounts or appoint agents to recover outstanding tax debts would continue to be applied with strict safeguards.
“The Income Tax Act provides for powers to freeze and appointment of agents to collect outstanding taxes. This is used only for businesses and individuals who can afford to pay what they owe but are choosing not to. The order can be given to banks and employers when taxpayers refuse to pay acknowledged tax debt,” she said.
She added that the criteria and controls governing such actions are under review to ensure fairness and proportionality in enforcement.
“For SMEs, the use of clearing agents for imports is not mandatory, but optional. NamRA will issue public notices on how SME importers can register to self-clear within a defined threshold for straightforward imports where no special permits are required,” Shafudah said.
She said this measure aims to ease trade procedures and reduce operational costs for small businesses.
