Changes to the Second Schedule of the Income Tax Act 1993 (as amended) as per Income Tax (Amendment of Monetary Amounts) Regulations No. 26 of 2018 has been published on the Lesotho Revenue Authority website in May 2018.

The changes as per Legal Notice 26 of 2018 are to be effective from 1 April 2018.

Tax Rates

  • Where chargeable income is between M1.00 and M61,080.00 the tax is = 20% of the amount;
  • Where chargeable income exceeds M61,080.00 the tax = M 12,216.00 + 30% of excess over 61, 080.00

Tax Credit

The law provides for an individual to be granted a non-refundable tax credit. A tax credit is a rebate or relief granted by law to individuals who made taxable income for the year of assessment. It is directly deductible from the amount after applying the applicable marginal tax rates to the chargeable income. The non-refundable tax credit has been changed to M 7,260.00 per year.


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