Find Accountancy, Audit and Tax expertise in Lesotho
- Overview
- Profession
- Tax
Overview
Lesotho possesses a variety of small accountancy firms in the capital, Maseru. Despite none of the ‘Big Four’ firms having an established presence, KPMG in South Africa undertakes assignments in the country. Lesotho is part of the International Federation of Accountants (IFAC), which works in conjunction with the International Accounting Standards Board (IASB) by setting implementation guidelines for the practitioners.Adoption of the International Financial Reporting Standards (IFRS) is permitted for listed companies in Lesotho. In the World Economic Forum’s Global Competitiveness Report (2012-13) Lesotho placed 121st in the world (out of 183 countries) for the strength of its auditing and reporting standards, with a value of 3.8 out of 7, compared to a world mean of 4.6. In the 2011 World Bank’s Ease of Doing Business Index the nation came 71st in relation to resolving insolvency, placing it above South Africa in 77th place.
Profession
The relevant professional body is the Lesotho Institute of Accountants (LIA). To qualify as a practicing accountant, an individual must sit the joint examinations conducted by the Institute and the Association of Chartered Certified Accountants (ACCA), which take place twice a year in Maseru. Tuition for the examinations is provided by the Centre for Accounting Studies, as well as other centres. In 2011 LIA and the South African Institute of Chartered Accountants formed a Memorandum of Understanding that committed them to developing the accountancy profession in Lesotho. The agreement will allow Lesotho students to enter a bursary programme to study chartered accountancy in South Africa; promote the chartered accountancy profession in Lesotho and foster a long term programme to increase capacity at the National University of Lesotho. The memorandum between the two countries marked a move towards greater regional cooperation between African countries and their accounting professions, and the focus that Lesotho is placing on chartered accountants as business leaders.
Tax
Personal income tax is progressive in Lesotho, rising from the standard rate of 22% up to the highest rate of 35%. The top corporate tax rate is 25%. Manufacturing companies pay tax of 15% on profits. A standard rate of 14% value-added tax (VAT) is raised on the sale of goods and services, 5% for electricity and telecoms; exports are free of VAT. In the 2011 Ease of Doing Business Index Lesotho placed 61st in the world for paying taxes, coming one below Swaziland. In the Global Competitiveness Report (202-13) it ranked 10th for total tax rate, with a rate of 16.0%, compared to South Africa with a rate of 33.1% (48th).
| Accountancy, Audit and Tax organisations in Lesotho | |
|---|---|
| Deloitte & Touche |
|
| Lesotho Institute of Accountancy |
|
| MNM Chartered Accountants |
|
| Office of the King |
|
| Sheeran & Associates |
|
