GROW YOUR BUSINESS IN LESOTHO

Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost

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​Praxima Services Includes

  • Full Payroll Outsourcing
     

  • Hybrid Payroll Outsource
     

  • International Payment Management
     

  • Local Filing
     

  • Social Security Filing
     

  • Interact with Local Authorities
     

  • Human Resources Management System
     

  • Integration with all Accounting and Third Party

    Software

Benefits of outsourcing to Praxima

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Local Tax Compliance

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Secure Data Transferring

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Responsive Administrators

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Increase Productivity

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Industry Experts

Running Your Payroll

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Focus on Your

Core Business

Lesothoan Payroll processed to International Standards

Payroll in Lesotho

The assessment year in Lesotho consists of a 12-month period starting 1 April to 31 March.  There are no social security systems in Lesotho for employed persons.  Lesotho does make use of the Pay-As-You-Earn (PAYE) system and the employer is required to remit the income taxes to the Lesotho Revenue Authority.  Residents are taxed on their worldwide income.  Non-residents are only subject to taxes on their Lesotho-sourced income.  

TAX RATES  |  2018 / 2019

 

Taxable income of residents are calculated as follow:

First M 61,080.00                 20%

over M 61,080.00                 30% 

SOCIAL SECURITHY  |  2018 / 2019

Lesotho does not have a social security system for employed persons.  Company benefits will be based on each company's policy. 

STATUTORY FILING  |  2018 / 2019

Taxpayers are required to submit an annual tax return by the last day of the third month after the assessment year end.  

An additional tax rate of 22% per year becomes payable when failing to file a return, failing to pay due taxes, failing to withhold taxes or pay the taxes withheld.  

Tax Residents

An individual will qualify as a tax resident if he/she

  • is a Ghana citizen that does not have a permanent home outside Ghana in a calendar year;

  • is present in the country for 183 days in any 12-month period; or

  • is a citizen with a permanent home in Ghana, but temporarily outside of the country for a period not longer than 365 continuous days.  Resident individuals are taxed on a sliding scale from 0% and 25%, while non-residents are subject to a flat rate tax of 20%.

Taxable Income

 

Benefits subject to fringe benefits tax are excluded from employment income.  Pension income is taxed in accordance to any other income.  Both residents and non-residents would be liable for capital gains tax should they dispose of business or investment assets. This also applies to a resident's assets located anywhere in the world.   

Exempt Income

The following income would be exempted from taxes: 

  1. Income derived from subsistence farming;

  2. The first LSL 500 of interest derived from a single savings account;

  3. Dividends received from a resident company. 

Your HRMS is Standard 

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Employee Self-service

Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries

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Records

Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.

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Work Flow

Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets

PAYMENTS, REPORTING & FILING

  • Direct payment into employee bank accounts. Emailed password protected pay slips.

  • Payment of taxes, benefit providers and other creditors.

  • Filing of returns to the authorities.

  • Generation and filing of statutory reports.

  • General ledger and 100's of customisable reports.

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