- Brackets updated
migrated from the production database; research reasoning not recorded.
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
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| LSL 0 | and above | 25.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| LSL 0 | LSL 77,760 | 20.0% |
| LSL 77,760 | and above | 30.0% |
Tax residency
- 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
Filing information
- Fiscal year
- 04-01 – 03-31
- Filing deadline
- 30 June
Sources
- 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
Change history
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.
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- Brackets updated
migrated from the production database; research reasoning not recorded.