SUPPLEMENTARY INSTRUCTIONS
1 Calculations and workings need only be made to the nearest M.
2 All apportionments should be made to the nearest month.
3 All workings should be shown in Section B.
TAX RATES AND ALLOWANCES
The following tax rates and tax allowances are to be used in answering the questions:
Second Schedule
(Section 9(1))
Resident individual income tax rates
Chargeable income Rate of tax
First M61,080 20%
Over M61,080 30%
Personal tax credit M7,260
Withholding tax rates
Payments to resident contractors 5%
Payments of interest by a resident to a resident 10%
Payments of Lesotho services contract to a non-resident 10%
Payments of international transactions 25%
(A lower withholding tax rate may apply under a double tax
treaty entered into by the government of Lesotho)
Third Schedule
(Section 10)
Resident company income tax rates
Nature of income Rate of tax
1. Manufacturing income derived from a manufacturing
activity of an industrial, scientific or educational nature
which promotes industrial, scientific, educational or other
development within Lesotho. 10%
2. Other manufacturing income 10%
3. Other income 25%
4. Commercial farming income 10%
Fourth Schedule
(Sections 109 and 116)
Tax rate for trustees, minors, fringe benefits and electing non-residents
The applicable rate is 30%
2
Fifth Schedule
Section 16(2))
Minimum chargeable income
The multiplication factors are:
Air travel 100%
Electricity amount 100%
Principal residence amount 5%
Schooling amount 100%
Secondary home amount 5%
Vehicle amount 25%
The amounts specified are:
Air travel amount M2,500
Electricity amount M3,000
Principal-residence amount M150,000
Schooling amount per child M1,000
Secondary home amount M20,000
Vehicle amount M20,000
Sixth Schedule
(Section 41)
Declining balance depreciation rates
Group
Depreciation rate Assets included
1 25% Automobiles, taxis, light general purpose trucks,
tractors for use over-the-road, special tools and
devices.
2 20% Office furniture, fixtures and equipment,
computers and peripheral equipment and data
handling equipment, buses, heavy general
purpose trucks, trailers and trailer mounted
containers, construction equipment.
3 10% Any depreciable asset not included in another
group.
4 5% Railroad cars and locomotives and railroad
equipment, vessels, barges, tugs, and similar
water transportation equipment, industrial
buildings, engines and turbines, public utility plant.
5 100% Mining
Value added tax (VAT)
Standard rate (all other taxable supplies and services) 15%
Supplies of electricity 8%
Telecommunications 9%
Basic foods and agricultural inputs 0%
Exports 0%
3 [P.T.O.
