Namibia | 2025 Mid-Year Budget Review Update

Namibia | 2025 Mid-Year Budget Review Update

On 21 October 2025, the Minister of Finance, Hon. Ericah B. Shafudah, presented the Mid-Year Budget Review in Parliament.

During the address, ten income tax-related amendments were highlighted. These proposals were previously announced in the annual Budget Statement on 27 March 2025. They are included in the Income Tax Amendment Bill 2025, which is anticipated to be passed into law by the end of this financial year.

Proposed change to housing allowance/benefit

A key proposal affecting payroll relates to the housing allowance/benefit structure for PAYE purposes.

  • The government is proposing that a ceiling amount of N$400,000 be set on the annual housing allowance/benefit amount that is currently subjected to the one third exemption.
  • Please note, this is currently a proposed amendment and is not yet law. We will provide further information and confirm the details once the Income Tax Amendment Bill 2025 has been officially passed.

Full Budget Statement

For more information and to review all proposals in detail, you can read the full statement here: https://www.pwc.com/na/en/assets/pdf/2025-minister-of-finance-mid-year-budget-statement.pdf



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