Lesotho Tax Overview

Lesotho tax system at a glance

• Overview — Lesotho taxes income under the Income Tax Act and operates a VAT system administered by the Revenue Services Lesotho (RSL). The tax year runs to 31 March and the currency is the Lesotho loti, which is pegged 1:1 to the South African rand.
• Tax year — 1 April to 31 March (Income Tax Act (https://www.rsl.org.ls/income-tax))
• Currency — Lesotho loti (LSL / M), pegged 1:1 to the South African rand (ZAR) ((approx — confirm)) (Common Monetary Area agreement)
• Tax authority — Revenue Services Lesotho (RSL) (Revenue Services Lesotho Act (https://www.rsl.org.ls/))
• Basis of taxation — Residents are taxed on worldwide income; non-residents on Lesotho-source income only (Income Tax Act (https://taxsummaries.pwc.com/lesotho))
• Headline personal income tax rates — 20% and 30% (progressive, two-band) percent (Income Tax Act (https://www.rsl.org.ls/personal-income-tax))
• Standard corporate income tax rate — 25% percent (Income Tax Act (https://www.rsl.org.ls/corporate-income-tax))
• Concessional CIT rate (manufacturing & commercial farming) — 10% percent (Income Tax Act (https://www.rsl.org.ls/corporate-income-tax))
• Does VAT/GST exist? — Yes — VAT, standard rate 15% (Value Added Tax Act 2001 (https://www.rsl.org.ls/value-added-tax-vat))
• Annual income tax return deadline — 30 June following the end of the tax year (Income Tax Act (https://www.rsl.org.ls/personal-income-tax))
• VAT return / payment deadline — 20th of the month following the tax period (Value Added Tax Act 2001 (https://www.rsl.org.ls/value-added-tax-vat))