9.1. Unilateral and Treaty Based Methods Available for the Elimination or Mitigation of Double Taxation
A unilateral tax relief is available for foreign taxes paid on dividends, royalties and similar income which is also taxable in Namibia, subject to applicable treaty benefits. However, under the prevailing territorial system, foreign sourced income is excluded from the tax base.
Below is a summary of the available methods for various income tax streams based on domestic law.
| Royalty Copyright | OC |
| Capital Gains | OC |
| Dividends | OC |
| Interest | OC |
| Royalty Patent | OC |
| Sales | OC |
| Service Management | OC |
| Service Technical | OC |
| Royalty Trademark | OC |
The credit column shows the type of foreign tax credit granted when the receiving country receives a payment. Four abbreviations are used for the type of foreign tax credit available:
- NC means no credit but foreign withholding taxes can be deducted.
- OC means ordinary credit, i.e., credit for foreign withholding taxes (e.g., withholding taxes).
- IC means indirect credit, i.e., credit for underlying corporate taxes as well as foreign withholding taxes.
- ND means no credit and no deduction for any foreign withholding taxes incurred.