DoubleTaxationTaxes on salary: Lesotho preliminary data
How much income tax and social contributions are paid on a salary in Lesotho, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | LSL 1,161,364 ≈ €60,000 |
|---|---|
| Income tax | LSL 328,393 ≈ €16,966 |
| Take-home pay | LSL 832,970 ≈ €43,034 |
| Employer's labour cost | LSL 1,161,364 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 LSL 580,682 | €60,000 LSL 1,161,364 | €120,000 LSL 2,322,727 |
|---|---|---|---|
| Sole proprietor | LSL 136,768 26.2 % | LSL 293,552 28.1 % | LSL 607,120 29.0 % |
| Company | LSL 130,653 25.0 % | LSL 261,307 25.0 % | LSL 522,614 25.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Lesotho yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 19.356059 LSL (Lesotho loti pegged 1:1 to the South African rand (Common Monetary Area); ZAR per USD is the ECB cross rate published by Banca d'Italia for 2 Jan 2026 (19.3561 / 1.1721), 2026-01-02) ↗
Sources
- Revenue Services Lesotho — Income Tax structure 2026-2027
- Revenue Services Lesotho — FAQs
- US SSA — Social Security Programs Throughout the World: Africa, 2019 — Lesotho
- Banca d'Italia — Euro foreign exchange reference rates, 2 Jan 2026
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.