lra.org.ls Register For Income Tax : Lesotho Revenue Authority

Organization : Lesotho Revenue Authority
Type of Facility : Register For Income Tax
Country: Lesotho

Website : http://www.lra.org.ls/
Download Forms : http://www.lra.org.ls/

LRA Register For Income Tax

Registering is providing the Lesotho Revenue Authority (LRA) with personal details such as full names, address and details of income earned; these details are provided through a registration form available in all the LRA Advice Centres.

Related : LRA Lesotho Revenue Authority Register For VAT Lesotho : www.statusin.org/8944.html

The effect of registration is, first, to allow the LRA to allocate a specific taxpayer identification number (TIN). TIN is common to both Customs and Value Added Tax (VAT) as well. That is, only one TIN is allocated for purposes of Income Tax, Customs and Excise, and VAT. The TIN is allocated only after all the requirements of registration are met, and must be quoted at all times when corresponding and communicating with the LRA or when completing tax forms. A person who knowingly uses a false TIN commits a criminal offence that is punishable by fine or imprisonment or both.

Second, registration also allows the LRA to tax the person appropriately, which then allows the taxpayer to meet the requirements of other bodies who may provide services or benefits there from.

Why register? :
Registration is required by the tax law for any person that earns income or runs a business within the borders of Lesotho. Furthermore, registering for income tax is required by other statutory and regulatory bodies like the Departments of Trade, Immigration, Labour, etc.

Who should register? :
Every resident, trustee, partnership, and company that has a registered business in Lesotho and has a chargeable income must register with Lesotho Revenue Authority for income tax. Chargeable income is gross income less related expenses. Gross income includes any of the following: business income, employment income, property income, and any other income. For any further information, the LRA Advice Centres may be contacted for assistance.

What Happens if I Fail to Register? :
Failure to register is a criminal offence and may lead to heavy fines or imprisonment. There may also be heavy penalties on those who fail to register.

Registering Companies For Income Tax:
The first step in registering a company is to complete a company registration form which may be obtained from any of the LRA Advice Centres. The registration form requires all the particulars of the company, together with full names and addresses of shareholders and directors.

Non-resident Directors:
In the case of non-resident directors, every company carrying on a business or having an office in Lesotho must a Public Officer, who is the company’s representative in all dealings with the LRA, and must be resident in Lesotho. The Public Officer may be interviewed to acquire additional information about the company and its directors.

Resident Directors:
Resident directors also must register as taxpayers separately from their companies. As such they must provide personal details and other relevant information regarding other sources of income.

Certified copies of documents to be attached to the registration Form:
** The Memorandum and Articles of Association
** Certificate of Incorporation
** License: Trader’s, manufacturing, farming etc (depending on business type)
** Copies of passports of the directors
** A schedule listing all members of employees and benefits offered.

Registering For Income Tax As Individuals And Partnerships:
Self-Employed Individuals:
Self-employed persons are people, other than companies, who are in business on their own.

Resident Individuals:
To register as a self-employed individual, the following should accompany a completed registration form: trader’s license and certified copy of passport of the owner.

Non-resident Individuals:
If the individual is a non-resident intending to operate in Lesotho, in addition to registration form, traders license, copy of passport for the owner, a certified copy of a valid work permit should also be submitted when registering.

Partnerships:
Partnership is considered as collection of individuals because each partner gets taxed on their share of the partnership profits.

Accordingly, each partner must register for tax on his or her own. To register the partnership, the following are required:
** Trader’s license
** Certified copies of partners passports
** Partnership deed