🇱🇸 Lesotho Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 30.0% Worldwide system

Corporate tax 25.0%

VAT 15.0% standard rate

Tax residency 183 days 5 tax treaties

Lesotho tax profile

Data year: 2026

Tax system: Worldwide Residents are taxed on worldwide income; non-residents are taxed on Lesotho-source income. The loti (LSL) is pegged at par with the South African rand.
Top PIT rate: 30.0%
Corporate tax rate: 25.0%
VAT: 15.0%
Capital gains tax: Rate not recorded
Social security (employee): Rate not recorded
Social security (employer): Rate not recorded
Dividend withholding: 25.0%
Interest withholding: 25.0%
Royalty withholding: 25.0%
Treaty count: 5

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
LSL 0	and above	25.0%	$0 +

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
LSL 0	LSL 77,760	20.0%	$0 – $4,270
LSL 77,760	and above	30.0%	$4,270 +

Days threshold: 183 days
Residency rules: An individual is resident for the year of assessment if they have a normal place of abode in Lesotho and are present for part of the year, are present in Lesotho for more than 182 days in any consecutive 12-month period that includes part of the year, are a Lesotho Government official posted overseas, or are otherwise resident. Split-year rules apply when residence status changes. Non-resident individuals with only passive Lesotho-source income are generally taxed at the standard 25% rate; full-time employment or business in Lesotho uses the resident marginal schedule.
Exit tax: No
CFC rules: No

RSL Income Tax Structure 2026-27 (accessed Oct 9, 2026) Resident PIT bands, 20%/30% rates, M12,240 annual tax credit from 1 April 2026
RSL tax rates (accessed Oct 9, 2026) Headline PIT, CIT 25%/10% manufacturing and commercial farming, VAT bands, contractor WHT
Income Tax Act 1993 (RSL) (accessed Oct 9, 2026) Residence tests, worldwide taxation, standard 25% rate, manufacturing CIT rules
RSL Withholding Tax Public Ruling (accessed Oct 9, 2026) 25% WHT on passive payments to non-residents; DTA reduced rates
Lesotho National Development Corporation — Taxation (accessed Oct 9, 2026) CIT filing 30 June, April–March year, capital gains included in income

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%