7. Other

Can a person who is regitered for TIN only charge VAT?

No. Only a person who is registered for VAT can charge VAT.

Does Lesotho Revenue Authority(LRA) staff pay tax? If yes, are they taxed at the same rate as any other employee elsewhere? Where does that money go?

 Yes, LRA staff members pay taxes at applicable rates just like any other employees elsewhere in Lesotho. All taxes are collected on behalf of, and ...

Does overtime attract tax?If yes, how is it taxed?

Yes, overtime payment attracts tax. Overtime payment is part of individual’s employment income; therefore it is subjected to tax at applicable rates....

If I am issued with a tax clearance certificate, does it mean that my tax liability is cancelled?

 No. A tax clearance certificate is a document issued by the LRA to a Client who is compliant with tax laws or obligations. If a Client has an outsta...

If I have an Import VAT Credit Facility (IVCF), does it mean that I do not have to pay VAT?

 No, having IVCF only means that goods can be imported without having to pay VAT upfront at the port of entry. Payments for IVCF are expected on or b...

What happens if I fail to register?

A person who fails to register commits an offence and is liable, on conviction, to a fine or imprisonment or both

What is company tax, how is it calculated and how does it differ from PAYE?

Company tax is tax levied on company profits. It is calculated by taking into account all income (turnover) generated by a company and deducting busi...

What is the difference between VAT number and TIN (Taxpayer Identification Number)

 TIN is allocated to every Client who has registered with LRA for tax purposes. It is a unique number given to each registered Client and holds all ...

Who should register for Income Tax?

Every individual, trustee, partnership and company that has a business in Lesotho and has a chargeable income must register with Lesotho Revenue Auth...

Why are terminal benefits subjected to tax, yet they do not form part of salary?

Terminal benefits although not part of the monthly salary form part of an individual’s taxable income or earnings.