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List of incentives available in this location for quick easy reference below.

Incentives

Table key

• Incentive offered
• Incentive not offered
• Did not submit information

Cash grants/incentives
Tax exemptionsMore [+]Less [-]
0% corporate tax on manufacturing profit generated from exporting manufactured goods outside of the Southern African Customs Union (SACU). A maximum manufacturing corporate tax rate of 10% on profits for intra-SACU trade. No withholding tax on dividends distributed by manufacturing firms to local or foreign shareholders. No advanced corporation taxes are paid by companies on the distribution of manufacturing profits. Training costs are allowable at 125% for tax purposes. Payments made in respect of external management skills and royalties related to manufacturing operations are subject to withholding tax of 10%. Easy repatriation of manufacturing profits. A VAT rate of 14% (ensuring harmonisation with the RSA). Furthermore, the Lesotho Revenue Authority has introduced flexible VAT payment systems, to tax compliant firms, to ease cash flows. Duty free and quota free access provided by the regional trade and investment block of the Southern African Development Community (SADC). Preferential market access into the Australian market. Duty free access for certain products into Canada under the GSP system. The SACU EFTA gives SACU originating industrial and fish products duty free and quota free access to Switzerland, Norway, Iceland and Liechtenstein. Lesotho can also export all products to the European Union duty. 99% of Lesotho’s industrial products, including textiles and clothing can be exported duty and quota free to Japan. Duty free access to New Zealand and Turkey under a GSP.
Property assistance / other fiscal incentiveMore [+]Less [-]
LNDC leases out Factory shells and land to build factory shells at highly subsidised rates. They are much lower than the market rates.
Training and labor market assistance
Loan guarantees, cheap loans or finance
Exemptions from regulations
Target sectorsMore [+]Less [-]
Food Processing Resource based industries. Manufacturing
Sectors specific incentives

Sponsorship

If you are the authorised promotions agency for Lesotho and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.