Lesotho has a population of 2 million people with industries including agriculture, mining, and tourism. The standard corporate tax rate is 25% with manufacturing and commercial agriculture industries paying 10% tax. The tax year runs from April 1 – March 31st.

Labor and Payroll Considerations:

  • Work contracts can be written or verbal
  • Minimum wage is LSL 1,620 per month, but can vary based on industry
  • Income tax is withheld from employee pay using a Pay-As-You-Earn (PAYE) schedule
  • Businesses should register for PAYE and if benefits are offered, they should also register for Fringe Benefit Tax (FBT)
  • There is no social security in Lesotho
  • Foreigners intending to work in Lesotho must obtain a work permit before entering the country. Employers must sponsor foreign workers

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