Chamwe Kaira
Authorities have assured investors operating in Namibia’s Special Economic Zones (SEZs) that their interests will be protected while the government reviews tax incentives offered under the framework.
CDH Namibia noted in its 2026/27 budget review that measures will be introduced to maintain a stable and predictable rules-based environment for businesses already operating within SEZ structures.
The planned reforms aim to strengthen the role of SEZs in supporting economic activity, skills transfer and technology development while contributing to national revenue.
The government indicated that the design of SEZ incentives will consider global economic conditions and Namibia’s international obligations. It will also allow space for cooperation between investors and the state.
The new SEZ Bill is undergoing legal review and is expected to be tabled in Parliament before the end of the year.
CDH also noted that adjustments to personal income tax brackets announced in the 2026/27 national budget will affect pay-as-you-earn (PAYE) withholding calculations across the public service.
The changes are expected to influence the effective tax burden on employment income.
Public sector payroll systems will need to apply the new tax parameters once they take effect to comply with the updated framework.
The firm also highlighted government plans to modernise the Value Added Tax (VAT) Act and introduce electronic invoicing.
E-invoicing is expected to improve compliance, strengthen revenue collection and reduce fraud by allowing real-time verification of transactions and limiting fraudulent input tax claims.
The 2026/27 budget also announced several legislative and policy reform initiatives.
The Income Tax Amendment Bill is under legal review and is expected to be presented to Parliament in the second quarter of 2026.
The Public Finance Management Bill, which will replace the State Finance Act of 1991, is also planned for tabling in Parliament in 2026.
The Public Procurement Amendment Bill is being drafted and is expected to be introduced by mid-2026.
The Namibia Investment Promotion and Facilitation Bill (NIPFA) has completed public consultations and submissions are under review.
Engagement with the business community on the National Equitable Economic Empowerment Framework (NEEEF) is continuing.
“Taken together, these reforms represent a comprehensive effort to strengthen the institutional and legislative foundations of public finance and procurement in Namibia, with implications for fiscal discipline, expenditure oversight, and the efficiency of public investment delivery,” CDH said.
The government has also indicated plans to introduce a tax deduction or incentive for corporate social responsibility contributions.
CDH said the measure could allow companies to claim tax deductions or other tax benefits for qualifying CSR contributions, reducing taxable income while supporting development initiatives.
Caption
Diamond-cutting factories have previously benefited from tax incentives under special economic zones.
- Photo: Contributed
