Namibia transfer pricing, 2026: s.95A arm's length rule, connected persons and the 30% tax EBITDA interest cap. Figures come from Namibian law and official pages opened on 2026-11-01. Items that could not be opened are named as not yet confirmed. Not reviewed by a licensed accountant.
Namibia · tax year 2026 · changed 3 Nov 2026
Built from the law · every figure links to the official source · sources read 1 Nov 2026 for tax year 2026
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| Item | Amount | Tax year | Official URL |
|---|---|---|---|
| Interest cap | Net interest expense over 30% of tax EBITDA not deductible | 2026 | https://www.lac.org.na/laws/annoSTAT/Income%20Tax%20Act%2024%20of%201981.pdf (s.95A(3)) |
| Cap exemption | Net interest expense not exceeding N$3,000,000 | 2026 | same |
| Carry forward | 5 years; 10 for mining, petroleum, green hydrogen | 2026 | https://www.lac.org.na/laws/annoSTAT/Income%20Tax%20Act%2024%20of%201981.pdf (s.95A(5)) |
General reference only. This skill is general tax reference material for AI-assisted workflows. Do not rely on it to file, pay or take a position without review by a qualified professional in Namibia.
Connected persons in an international transaction: resident with non-resident; two non-residents through a Namibian permanent establishment; two residents through a foreign permanent establishment, or where a treaty takes one out of Namibian tax (s.95A(1), Act; NamRA). Connected includes a non-company holding at least 20% of a company, group companies and control in fact. Banks and registered insurers are outside the interest cap (s.95A(7)).
| Item | Amount | Tax year | Official URL |
|---|---|---|---|
| Interest cap | Net interest expense over 30% of tax EBITDA not deductible | 2026 | https://www.lac.org.na/laws/annoSTAT/Income%20Tax%20Act%2024%20of%201981.pdf (s.95A(3)) |
| Cap exemption | Net interest expense not exceeding N$3,000,000 | 2026 | same |
| Carry forward | 5 years; 10 for mining, petroleum, green hydrogen | 2026 | https://www.lac.org.na/laws/annoSTAT/Income%20Tax%20Act%2024%20of%201981.pdf (s.95A(5)) |
Where the price differs from the arm's length price the Minister may adjust (s.95A(2)). The cap also covers third-party debt guaranteed by a connected person (s.95A(4)). Tax EBITDA is taxable income before net interest, tax, tax depreciation and amortisation.
The adjustment flows through the company return.
An adjustment produces a shortfall: see the company skill, s.66.
Withholding on the same payments: cross-border skill.
Example 1. Net interest N$10m, EBITDA N$20m. Cap N$6m, N$4m disallowed and carried forward.
name: Cap
inputs:
n: 10000000
e: 20000000
steps:
- cap: e * 0.30
- dis: n - cap
expected:
dis: 4000000.00
Example 2. A decision: reduce debt? Net interest N$2.5m is within N$3m, so no cap applies; at N$3.5m on EBITDA of N$10m, N$500,000 is lost.
name: Over the limit
inputs:
n: 3500000
e: 10000000
steps:
- dis: max(0, n - e * 0.30)
expected:
dis: 500000.00
| Source | URL | Read on |
|---|---|---|
| Income Tax Act 24 of 1981, annotated to Act 4 of 2024 (read: s.95A) | https://www.lac.org.na/laws/annoSTAT/Income%20Tax%20Act%2024%20of%201981.pdf | 2026-11-01 |
| NamRA transfer pricing (read: whole page) | https://www.namra.org.na/investors-info-pack/page/transfer-pricing-301019/ | 2026-11-01 |
Not yet confirmed: Practice note and documentation requirements; penalties specific to transfer pricing; methods.
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