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Lesotho vs United Arab Emirates
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇱🇸 Lesotho
vs
🇦🇪 United Arab Emirates
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
No change
0%
No personal income tax; unlikely to change short-term
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
No change
5%
5% stable; GCC coordination maintained
No change

Corporate Tax Rate

Corporate Tax Rate
25%
No change
9%
Corporate tax compliance and reporting maturing
No change

Capital Gains Tax

Capital Gains Tax
Taxed as income
No change
0%
No CGT; free zone benefits under review for Pillar Two
No change

Social Security & Payroll

Social Security / Payroll
N/A
No change
~17.5%
Emiratisation targets affecting employer costs
No change
State, Regional & Local Taxes

🇱🇸 LesothoLesotho 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 — 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.

🇦🇪 United Arab EmiratesEmirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Lesotho vs United Arab Emirates: Key Tax Differences (2026)

💰 Income Tax: 🇱🇸 Lesotho has a higher top income tax rate (0–35% vs 0%). 🇦🇪 United Arab Emirates is more favourable for high earners.

🛒 VAT/Sales Tax: Lesotho has a higher consumption tax (15% vs 5%).

🏢 Corporate Tax: 🇦🇪 United Arab Emirates offers a lower corporate rate (9% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇦🇪 United Arab Emirates taxes investment gains at a lower rate (0% vs 25%), benefiting investors.

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All 🇱🇸 Lesotho comparisons →All 🇦🇪 United Arab Emirates comparisons →