Lesotho vs Somalia
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.
πΈπ΄ Somalia β Somalia Tax System
Somalia's formal tax system is extremely limited. The Federal Government has been rebuilding fiscal capacity since 2012 after decades of civil war. Tax revenue is less than 2% of GDP. Customs duties at ports (especially Mogadishu) are the main revenue source. Al-Shabaab controls much of the south and runs a parallel extortion-based taxation system. Income tax legislation exists on paper but enforcement is minimal.
Lesotho vs Somalia: Key Tax Differences (2026)
π° Income Tax: π±πΈ Lesotho has a higher top income tax rate (0β35% vs 0β30%). πΈπ΄ Somalia is more favourable for high earners.
π VAT/Sales Tax: Lesotho has a higher consumption tax (15% vs 10%).
π’ Corporate Tax: π±πΈ Lesotho offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
π Capital Gains: πΈπ΄ Somalia taxes investment gains at a lower rate (0% vs 25%), benefiting investors.