With the assistance of the IMF, a new proposed tax law for Lesotho has been drafted.

The draft legislation has been issued to the public but has not yet been enacted. Some of the main features will be ;

• reduction of the top marginal tax rate for individuals from 48% to 40%.
• reduction of  the corporate tax rate from 45% to 40% for non-manufacturing companies .
• introduction of a tax on capital gains, a fringe benefits tax payable by employers, and an advance corporation tax.
• an increase in the withholding tax on interest, dividends and management fees paid to non-residents from 10% to 25%

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KPMG