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Tax Rates

The document outlines the tax rates and allowances applicable in Lesotho, including individual income tax rates, withholding tax rates, and corporate income tax rates. It specifies various tax schedules for residents, companies, and trustees, as well as minimum chargeable income factors and depreciation rates for different asset groups. Additionally, it details the value-added tax (VAT) rates for various goods and services.

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77 views2 pages

Tax Rates

The document outlines the tax rates and allowances applicable in Lesotho, including individual income tax rates, withholding tax rates, and corporate income tax rates. It specifies various tax schedules for residents, companies, and trustees, as well as minimum chargeable income factors and depreciation rates for different asset groups. Additionally, it details the value-added tax (VAT) rates for various goods and services.

Uploaded by

NEO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Foundations in Taxation – Lesotho (FTX – LSO)

Tax Tables

TAX RATES AND ALLOWANCES

The following tax rates and allowances are to be used when answering the questions:

Second Schedule
Resident individual income tax rates

Chargeable income Rate of tax


First M70,500 20%
Over M70,500 30%
Personal tax credit M11,040

Withholding tax rates


Rate of tax
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
Resident company income tax rates

Nature of income Rate of tax


1. Manufacturing income derived from a manufacturing 10%
activity of an industrial, scientific or educational nature
which promotes industrial, scientific, educational or
other development within Lesotho
2. Other manufacturing income 10%
3. Other income 25%
4. Commercial farming income 10%

Fourth Schedule
Tax rate for trustees, fringe benefits and electing non-residents 30%

J25/D25 1
Fifth Schedule
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 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
Declining balance depreciation rates

Group Assets included Depreciation rate


1 Automobiles; taxis; light general purpose trucks; 25%
tractors for use over-the-road; special tools and devices
2 Office furniture, fixtures, and equipment; computers and 20%
peripheral equipment and data handling equipment; buses;
heavy general purpose trucks; trailers and trailer mounted
containers; construction equipment
3 Any depreciable asset not included in another group 10%
4 Railroad cars and locomotives and railroad equipment; 5%
vessels, barges, tugs and similar water transportation
equipment; industrial buildings; engines and turbines;
public utility plant
5 Mining 100%

Value added tax (VAT)

Standard rate (all other taxable supplies and services) 15%


Supplies of electricity 10%
Telecommunications 15%
Basic foods and agricultural inputs 0%
Exports 0%

J25/D25 2

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