Lesotho Corporate Income Tax (CIT) Calculator
Determine corporate income tax under Revenue Services Lesotho (RSL) rules: preferential 10% manufacturing rate, standard 25% commercial rate, and allowable deductions.
🏢 Mekhoa le Lichelete tsa Khoebo (Business Financials)
📊 Lekhetho le Lebelloang (CIT Assessment)
| Ntlha (Component) | Tekanyetso (Basis) | Chelete (LSL M) |
|---|
❓ Lipotso tse Atisang ho Botsoa (FAQ)
What is the corporate income tax rate in Lesotho?
Under the Lesotho Income Tax Act, the standard corporate income tax (CIT) rate is 25% on taxable commercial profits. A preferential statutory rate of 10% applies to qualifying manufacturing activities and agricultural processing companies.
How does the 10% preferential manufacturing rate qualify in Lesotho?
Companies engaged in manufacturing or processing goods within Lesotho (including textile, garment, and industrial fabrication for local sale or export under AGOA or SADC) qualify for the reduced 10% corporate income tax rate upon registration with the Ministry of Trade and Industry.
How long can operating tax losses be carried forward in Lesotho?
Tax losses incurred by a company carrying on business in Lesotho can generally be carried forward indefinitely, but can only be offset against future taxable business income of the same business character.
What capital allowances and depreciation are permitted under RSL rules?
RSL permits accelerated depreciation allowances: industrial buildings qualify for an initial 50% write-off or straight-line 4% to 5% annually, while manufacturing machinery qualifies for accelerated depreciation up to 25% per annum.
What is the dividend withholding tax on post-tax corporate profit distributions?
Dividends paid to resident shareholders out of manufacturing income are taxed at 0%, while non-resident dividends face a 10% or 15% withholding tax subject to applicable Double Taxation Agreements (e.g. South Africa-Lesotho DTA).
Engr. Muhammad Shahzad
Verified Southern Africa Statutory Systems SpecialistChartered Systems Engineer and Public Finance Specialist. Calibrating statutory computation architectures for the Kingdom of Lesotho, including Revenue Services Lesotho (RSL) PAYE and corporate tax regimes, SACU common external tariffs, Labor Code Order 1992 employee rights, and Mines and Minerals Act royalty frameworks.