Lesotho Corporate Income Tax

Corporate income tax rates and base

Resident companies and Lesotho permanent establishments of foreign companies pay corporate income tax at a standard 25%, with a concessional 10% rate for manufacturing and commercial farming income. Withholding taxes apply to dividends, interest and royalties, with reduced rates for manufacturing-linked payments.

• Standard corporate income tax rate — 25% percent (Income Tax Act)
• Manufacturing & commercial farming rate — 10% percent (Income Tax Act)
• Tax base — Resident companies taxed on worldwide chargeable income; non-resident companies taxed on Lesotho-source income (including PE profits) (Income Tax Act)
• WHT on dividends to non-residents — 25% (0% where the dividend is paid out of manufacturing income) percent (Income Tax Act)
• WHT on interest to residents — 10% percent (Income Tax Act)
• WHT on interest to non-residents — 25% (15% where the loan finances manufacturing income) percent (Income Tax Act)
• WHT on royalties to non-residents — 25% (15% where the technology is used to earn manufacturing income) percent (Income Tax Act)
• WHT on management/technical/consulting fees to non-residents — 25% standard; 15% for manufacturing-related; 10% on Lesotho-source contracts percent ((approx — confirm)) (Income Tax Act)
• Branch profits / remittance to non-resident — 25% percent ((approx — confirm)) (Income Tax Act)
• Corporate return filing deadline — 30 June following the end of the 31 March tax year (Income Tax Act)
• Provisional / advance corporate tax — Companies pay tax in instalments during the year, with the balance settled on assessment ((approx — confirm instalment dates and number)) (Income Tax Act)