27 July 2016 Namibia increases withholding tax rate on nonresident directors' fees The Namibian Income Tax Amendment Act, Act 13 of 2015, from December 30, 2015, reduced the rate of withholding tax on all service payments to nonresidentsto 10% from 25%. Inland Revenue advised at the time that it was the intention toonly reduce the withholding tax rate in respect of management or consultancyfees as defined. With effect from June 21, the withholding tax rate applicable to directors' fees paid to nonresidents is 25% of the gross directors' fees. Nonresident directors are no longer required to include the directors' fees in their Namibian income tax returns because the withholding tax is a final tax in terms of section 35A(6) of the Income Tax Act. Document ID: 2016-1288 |
