Eritrea vs Lesotho
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ช๐ท Eritrea โ Eritrea Tax System
Eritrea has a progressive income tax up to 38%. Uniquely, it levies a 2% 'diaspora tax' on Eritrean citizens living abroad โ a controversial policy condemned by the UN. Corporate tax is 30%. The highly centralized command economy under President Isaias Afwerki limits private sector activity. Mining (gold, copper, zinc) is the main formal revenue sector. International sanctions apply.
๐ฑ๐ธ Lesotho โ Lesotho Tax System
Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa โ customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.
Eritrea vs Lesotho: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐ท Eritrea has a higher top income tax rate (0โ38% vs 0โ35%). ๐ฑ๐ธ Lesotho is more favourable for high earners.
๐ VAT/Sales Tax: Lesotho has a higher consumption tax (5% vs 15%).
๐ข Corporate Tax: ๐ฑ๐ธ Lesotho offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐ธ Lesotho taxes investment gains at a lower rate (25% vs 30%), benefiting investors.