Income Tax Returns season now under way



MASERU– All Basotho individuals who generate income are required to complete their online income tax returns for the 2023/24 financial year. The filing period commenced on April 1 and is expected to end on June 30. To facilitate convenient tax payments, Revenue Service Lesotho (RSL) has launched e-payment and e-taxation services, enabling taxpayers to pay their taxes online and electronically file their tax returns. These digital services aim to enhance the adoption of technology and simplify the tax payment process nationwide.

RSL Client Education Officer, Matlotliso Tlali, said clients can now fill their tax returns online during the Prefilling Season Education on social media. She said their office focuses on informing or rather providing information on tax-related issues, so she explained the filing season as a time for clients (business owners, employees in various sectors) to provide reports on how they performed in the past financial year .

“Since it is the end of the financial year, we decided to remind taxpayers that the filing season is approaching. This happens annually,” she said, explaining that clients are expected to declare all their sources of income. After filing, taxpayers are expected to have deducted their expenses. However, only allowable expenses are expected to be included in the filing.

“Business owners should be aware that only allowable expenses should appear. These expenses are warranted as an allowable expense only if it is wholly and exclusively incurred for revenue production while Non-Allowable Expenses means all purported expenses which are not chargeable against Gross Receipts,” she said explaining that allowable expenses may include transportation and rent while non-allowable expenses may include vacation expenses and school fees.

She further mentioned that requirements for filing include registering online via the Revenue Services Lesotho website. “The filing is done online to avoid long queues and to also give the business owner time to run their business while also filling,” she said, adding that e-filling is under the e-services drop button on the website. “We advise clients to choose the correct forms to fill. We have both individual and business forms so the information should go to the correct platform,” she said.

Apart from that, Tlali said a financial statement or profit and loss statement, statement of financial position or balance sheet and withholding tax certificate should be attached to filled documentation. Also, if a business owner is also employed outside his or her business, Tlali said the income should be included in the filing. “All sources of income should be appearing, and in this case, the tax certificate known as P16, payslip or salary printout should be attached, so that all income and tax paid are shown,” she said.

Tlali said Basotho can benefit from the simplified tax filing process by ensuring they are properly registered with RSL, including providing their identity number, email address, and phone number. “Once all the necessary information is current, individuals can easily register by visiting the RSL website, accessing e-services, selecting e-taxation, and completing the registration process.”

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