Lesotho vs Djibouti
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π±πΈ Lesotho β 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 β 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.
π©π― Djibouti β Djibouti Tax System
Djibouti has progressive income tax up to 30%. The country is strategically important as a maritime hub and hosts multiple foreign military bases (US, France, China, Italy, Japan), which provide significant lease revenue. The Port of Djibouti handles ~95% of Ethiopian imports/exports. VAT at 10% was introduced in 2009. Free trade zones offer tax exemptions.
Lesotho vs Djibouti: Key Tax Differences (2026)
π° Income Tax: π±πΈ Lesotho has a higher top income tax rate (0β35% vs 0β30%). π©π― Djibouti is more favourable for high earners.
π VAT/Sales Tax: Lesotho has a higher consumption tax (15% vs 10%).
π’ Corporate Tax: Corporate rates are similar in both countries (25% vs 25%).