Tax Rates

  • Standard 10% corporate income  tax applicable to all manufacturing entities; no withholding tax on dividends distributed by manufacturing firms to local or foreign shareholders;
  • No advanced corporation taxes are paid by companies on the distribution of manufacturing profits;
  • Training costs are allowable at 125% for tax purposes;
  • Payments made in respect of external management skills and royalties related to manufacturing operations are subject to a maximum withholding tax of 10%;
  • Easy repatriation of manufacturing profits;
  • A VAT rate of 14% (ensuring harmonization with the RSA). Furthermore, the Lesotho Revenue Authority has introduced flexible VAT payment systems, to tax compliant firms, to ease cash flows.
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About LNDC

The Lesotho National Development Corporation (LNDC) is the main parastatal of the Government of Lesotho charged with the implementation of the country’s industrial development policies.

“The mandate of the Corporation is to initiate, promote and facilitate the development of manufacturing and processing industries, mining and commerce in a manner calculated to raise the level of income and employment in Lesotho.”  more...

Contact us

Lesotho National Development Corporation
Block A, Development House, Kingsway Street
Maseru, Lesotho, 100


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