Last Updated on December 27, 2023 by Elidge Staff
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NamRA Levies and Duties in Namibia
NamRA, short for Namibian Revenue Agency, is responsible for the administration and collection of various levies and duties in Namibia. These levies and duties in Namibia are crucial in generating revenue for the government and ensuring the smooth functioning of the country’s financial system. In this article, we will delve into two key levies: Stamp Duty and Transfer Duty.
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Stamp Duty in Namibia
Stamp Duty in Namibia is a tax imposed on certain legal instruments in Namibia. These instruments include:
- Antenuptial or postnuptial contracts
- High purchase agreements
- Lease agreements
- Mortgage bonds
- Power of Attorney
It’s important to note that this is not an exhaustive list, and you can refer to schedule 1 of the Stamp Duty Act for a full list of instruments subject to stamp duty in Namibia.
Exemptions
Certain instruments are exempt from stamp duty. These exemptions include:
- Instruments for which the duty would be payable by the government, regional council, municipal council, or town council
- Instruments in connection with criminal proceedings
- Instruments on behalf of charitable or educational institutions of a public character that are exempt from income tax
For a comprehensive list of exemptions, please refer to section 4 of the Stamp Duty Act.
Stamp Duty Rates on Transfer Deed
When it comes to transfer deeds, the stamp duty rates in Namibia are as follows:
- Up to N$1000,000: Exempt from stamp duty in Namibia
- Above N$1000,000: N$10 for every N$1,000 or part thereof is payable
It’s worth mentioning that stamp duty is also applicable to lease agreements involving immovable property, regardless of whether other assets are included. However, no transfer duty is chargeable in respect of such lease agreements.
Transfer Duty in Namibia
Transfer Duty is a levy imposed on the value of any property acquired by an individual in Namibia. The duty is payable within 6 months of the acquisition date.
Exemptions
Certain acquisitions are exempt from transfer duty in Namibia. These exemptions include:
- Property acquired by the state, local authority, or educational institution of a public character
- Property acquired by a surviving spouse from the estate of a deceased spouse
- Acquiring sole ownership of the property as a surviving or divorced spouse
For a comprehensive list of exemptions, you can refer to section 9 of the Transfer Duty Act.
Late Payment Penalty
It’s important to adhere to the payment timelines for transfer duty in Namibia. A penalty of 10% is payable on late payments. Make sure to complete the payment within the specified period to avoid additional costs.
Understanding NamRA levies and duties in Namibia is essential for individuals and businesses alike. By familiarizing yourself with the stamp duty and transfer duty regulations, you can ensure compliance and avoid any unnecessary penalties. Remember to consult the relevant acts and seek professional advice if needed to ensure accurate interpretation and adherence to the law.
Please note that the information provided in this article is for informative purposes only and should not be considered as legal or financial advice. It’s always advisable to consult with a qualified professional for personalized guidance based on your specific circumstances.
FAQs about NamRA Levies & Duties in Namibia
1. What is NamRA?
NamRA stands for Namibian Revenue Agency, which is responsible for the administration and collection of various levies and duties in Namibia.
2. What are levies and duties in Namibia?
Levies and duties in Namibia are taxes and fees imposed on certain legal instruments and properties in Namibia to generate revenue for the government.
3. What are the key levies discussed in this article?
The key levies discussed in this article are Stamp Duty and Transfer Duty in Namibia.
4. What is Stamp Duty?
Stamp Duty is a tax imposed on certain legal instruments in Namibia, including antenuptial or postnuptial contracts, high purchase agreements, lease agreements, mortgage bonds, and power of attorney.
5. Are there any exemptions for Stamp Duty in Namibia?
Yes, certain instruments are exempt from Stamp Duty in Namibia, such as instruments payable by the government, instruments related to criminal proceedings, and instruments on behalf of exempt charitable or educational institutions.
6. Where can I find a comprehensive list of exemptions for Stamp Duty?
You can find a comprehensive list of exemptions for Stamp Duty in section 4 of the Stamp Duty Act.
7. How are stamp duty rates calculated for transfer deeds?
For transfer deeds in Namibia, properties up to N$1000,000 are exempt from stamp duty. Properties above N$1000,000 are subject to a stamp duty rate of N$10 for every N$1,000 or part thereof.
8. Is stamp duty applicable to lease agreements involving immovable property?
Yes, stamp duty is applicable to lease agreements involving immovable property, regardless of whether other assets are included.
9. Is transfer duty the same as stamp duty?
No, transfer duty is a levy imposed on the value of any property acquired by an individual in Namibia, whereas stamp duty is a tax on certain legal instruments.
10. What are the exemptions for transfer duty in Namibia?
Transfer duty exemptions include property acquired by the state, local authority, or educational institution of a public character, property acquired by a surviving spouse from the estate of a deceased spouse, and acquiring sole ownership of the property as a surviving or divorced spouse.
11. Where can I find a comprehensive list of exemptions for transfer duty in Namibia?
A comprehensive list of exemptions for transfer duty can be found in section 9 of the Transfer Duty Act.
12. When is transfer duty payable in Namibia?
Transfer duty is payable within 6 months of the acquisition date of the property.
13. What happens if I pay transfer duty late?
If transfer duty is paid late, a penalty of 10% is payable. It is important to adhere to the payment timelines to avoid additional costs.
14. Why is it important to understand NamRA levies and duties in Namibia?
Understanding NamRA levies and duties in Namibia is crucial for individuals and businesses to ensure compliance with the law and avoid unnecessary penalties.
15. Can the information in this article be considered as legal or financial advice?
No, the information in this article is for informative purposes only and should not be considered as legal or financial advice. It is advisable to consult with a qualified professional for personalized guidance based on your specific circumstances.
16. Where can I find the Stamp Duty Act and the Transfer Duty Act?
The Stamp Duty Act and the Transfer Duty Act can be referenced for detailed information on the regulations surrounding stamp duty and transfer duty.
17. What should I do if I need further clarification or assistance regarding NamRA levies and duties in Namibia?
If you need further clarification or assistance regarding NamRA levies and duties in Namibia, it is advisable to consult with a qualified professional who can provide accurate interpretation and guidance.
18. Is it possible to seek professional advice to ensure compliance with the law?
Yes, it is always advisable to seek professional advice to ensure accurate interpretation and adherence to the law regarding NamRA levies and duties in Namibia.
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