Tax
Income Tax Order with a 25 per cent company rate and 15 per cent VAT
The Income Tax Order 9 of 1993 charges income tax, with the standard company rate at 25 per cent and manufacturing income taxed at 10 per cent to support the garment sector. VAT is 15 per cent. The Revenue Services Lesotho administers both.
Key rules
- Jurisdiction — Revenue Services Lesotho assesses; objections to the Commissioner General; appeals to the Revenue Appeals Tribunal.
- Deadline — Company return: within 3 months of the 31 March year end
- Deadline — VAT return: monthly
Governing law
- Income Tax Order 9 of 1993
- Value Added Tax Act 9 of 2001
- Revenue Services Lesotho Act 14 of 2001
In practice
The 10 per cent manufacturing rate is explicit industrial policy for the textile sector, and because Lesotho is in the Southern African Customs Union, a large share of government revenue comes from the SACU common pool rather than from domestic tax at all.