East & Southern Africa
Lesotho: tax at a glance
A 25% corporate rate and a two-band personal system reaching 30%, with the loti pegged to the South African rand. Textiles and water royalties from South Africa anchor the economy.
Worldwide (residence-based)
Last verified
The taxes
- Personal income (top)
- 30%Two bands, with the higher rate of 30% applying above the threshold, subject to a personal credit.
- Corporate income
- 25%
- Capital gains
- Included in taxable income.
- VAT
- 15%
- Dividends (WHT)
- 25%
- Interest (WHT)
- 25%
- Royalties (WHT)
- 25%
- Social security (employee)
- None
- Social security (employer)
- None
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Property rates apply at municipal level.
- Other
- The loti is pegged to the rand. A reduced 10% corporate rate applies to manufacturing income.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- Manufacturing rate: 10% corporate tax on qualifying manufacturing income
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.