Incentives for Manufacturers & Exporters

Incentives for manufacturers and exporters

Namibia has a highly competitive incentive and fiscal regime which adds to its attractions for foreign investors, as well as creating an ideal business environment. The corner stones of this regime are the Foreign Investment Act and its provision for a Certificate of Status Investment, the Special Incentives for Manufactures and Exporters and the Export Processing Zone Incentives.

The Foreign Investment Act led to the creation of the Namibian Investment Center within the country’s Ministry of Trade and Industry, designed to facilitate the process off investment. The Act provides for:

Liberal foreign investment conditions;
Equal treatment of foreign and local investors;
Openness of all sectors of the economy to foreign investment;
Full protection of investments;
The granting of a Certificate of Status of Investment (CSI).

SUMMARY OF SPECIAL INCENTIVES FOR MANUFACTURERS, EXPORTERS AND EPZ ENTERPRISES

	Registered Manufacturers	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 program.
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

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Special incentives for manufacturers and exporters

Incentives

Incentives for manufacturers and exporters

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