Lesotho Tax Rates
Lesotho operates a progressive personal income tax system with rates up to 30%. The Lesotho Revenue Authority (LRA) administers the system, featuring a 25% corporate tax rate and 15% VAT. Lesotho is a small mountainous kingdom entirely surrounded by South Africa, with an economy driven by diamond mining, water exports, and textile manufacturing.
Top Income Tax Rate
30%
Corporate Tax Rate
25%
VAT / Sales Tax
15%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
Lesotho levies personal income tax at 20% on the first LSL 64,080 and 30% on income above that. A tax credit of LSL 8,280 effectively provides a tax-free threshold. Employment income is taxed through PAYE.
| Income Range | Tax Rate |
|---|---|
| L 0 – L 64K | 20% |
| L 64K+ | 30% |
Corporate Tax
The standard corporate tax rate is 25%. Manufacturing companies may qualify for a reduced rate of 10%. Companies in designated development areas may receive tax holidays.
Standard Rate
25%
Capital Gains Tax
Lesotho does not impose a separate capital gains tax. Business gains may be included in taxable income.
Rate
0%
VAT / Sales Tax
VAT is levied at 15% on most goods and services. Essential goods and exports are exempt or zero-rated.
Standard Rate
15%
Cryptocurrency Tax
Lesotho does not have specific cryptocurrency legislation.
Tax Treaties
Lesotho has approximately 5 double taxation agreements.
Treaty Network
5
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Lesotho
See how much you could save by moving here from your current country.
+$770
Tax in United States
$24K
24.4% effective
Tax in Lesotho
$24K
23.6% effective
You Save
3.2%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
