Export Processing Zone Tax Incentive Optimisation for a Manufacturer

A Namibian manufacturing company producing processed fish products at a facility in Lüderitz, holding EPZ status under the Export Processing Zones Act.

The company had held EPZ status for six years but had never formally reviewed whether it was maximising the available tax benefits or complying fully with the ongoing conditions attached to that status. A change in product mix had introduced some domestic sales alongside its export revenue, and the company was uncertain whether this affected its EPZ tax position. NamRA had also sent a routine compliance query requesting substantiation of the EPZ exemption claim.

We conducted a comprehensive review of the company's EPZ compliance, examining the conditions attached to its EPZ certificate, the split between export and domestic revenue, employment and investment thresholds, and the NamRA reporting requirements. We identified areas where the company's documentation was insufficient to sustain the exemption claim and prepared a remediation package. We also prepared the formal response to NamRA's query and advised on how to structure the domestic sales without endangering the EPZ status on the qualifying export revenue.

NamRA query resolved with documentation accepted. EPZ status confirmed on the qualifying export revenue. Domestic sales ring-fenced with a separate tax treatment. The company has a compliant structure that preserves the EPZ benefit on the portion of activity it was designed to cover. Annual savings from the preserved exemption are material relative to the cost of the engagement.