Africa · Tax guide
Lesotho
Lesotho taxes company profits at 25% and charges VAT at 15% once turnover passes M850,000. Manufacturing companies pay a lower rate, and taxes are administered by Revenue Services Lesotho (RSL).
At a glance
- Corporate income tax
- 25%
- VAT
- 15%
- VAT registration
- M850,000
- Withholding on payments abroad
- 25%
Lower rate for manufacturing
Standard rate
Annual turnover
Before treaty relief
Corporate income tax
Companies pay 25%, with a reduced rate for manufacturing and farming. Provisional tax is paid quarterly, and the annual return is due within six months of the year-end.
VAT
VAT is 15%, with a different rate on electricity and telecoms. Registration is required once annual turnover exceeds M850,000. Returns are filed monthly by the 20th.
Payments abroad
Payments to non-residents carry 25% withholding unless a treaty lowers it.
Key dates
- By the 20th of each monthVAT return
- QuarterlyProvisional tax
- Within six months of the year-endAnnual income tax return
Figures and sources
4 figures- Corporate income tax rate25%Under professional review
- VAT rate15%Under professional review
- Annual turnover above which VAT registration is requiredM850,000Under professional review
- Withholding on payments to non-residents25%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Lesotho based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in Lesotho (a Lesotho tax adviser) before making compliance decisions.