Repeal of Tax Incentives

Repeal of Tax Incentives

On 19 February 2020, the Minister of Finance, Honourable Calle Schlettwein, tabled the first income tax amendment bill of 2020. The bill repeals the tax incentives applicable to registered manufacturers and export processing zones (“EPZ”).

The proposed amendment is in fulfilment of the requirements of the European Union (EU) for the removal of Namibia from the list of non-cooperative jurisdictions as such incentives are regarded as harmful preferential tax treatment by the EU.

The repeals will become effective from a date to be determined by the Minister by notice in the Government Gazette. This means that even if the amendment bill is passed and gazetted, it will only become effective at a future date as determined by the Minister.

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