The Minister of Finance, Ericah Shafudah, has clarified that not all landlords are required to pay tax, explaining that taxation depends on an individual’s annual income rather than simply on property ownership.
She was responding to a question from National Democratic Party (NDP) leader Martin Lukato, who sought to understand whether there are any legal provisions that exempt landlords from paying tax.
Shafudah said that individual taxpayers are only taxed if their annual income exceeds N$100,000. “A property generates a rental income of N$2,500 per month; this would amount to, say, N$30,000 per year, which is below the taxable limit. Then if you don’t have any other income, that will not be subject to taxation,” she explained.
The minister emphasised that all taxpayers must ensure that the information they provide in their tax returns is accurate and truthful, warning that false declarations could have legal consequences.
She also noted that the Namibia Revenue Agency (NamRA) routinely audits individual tax returns to verify their completeness and accuracy.
“We strive to balance our resources by employing a risk-based audit approach. Our commitment remains strong in collecting all taxes that are rightly owed to the state,” Shafudah said, adding that taxes are considered a debt to the state.
“In fact, the state is considered a secured creditor; even in cases of insolvency, the taxpayers’ debt to the state comes first,” she stressed.
