Tag: FinTech

By Tokiso TKay Nthebe Tax compliance has for many years been cumbersome, time-consuming and a painful experience for both individuals and businesses in Lesotho. This process was characterised by long queues outside the tax authority’s office, a lot of paperwork and red tape leading to non-compliance by many Basotho. As financial technology (FinTech) evolved globally, transforming how financial transactions are made which includes making payments, sending money or paying bills, the same can be said for Lesotho’s tax compliance ecosystem. This blog discusses how you can use FinTech and digital solutions to manage your personal and business tax affairs with ease. What role does FinTech play in tax compliance? For as long as I can recall, nothing was as frustrating as dealing with my tax affairs. The entire experience was unpleasant, required a lot of paperwork and spending days trying to file and submit annual tax returns. To modernise tax service delivery, reduce compliance burden for taxpayers and improve efficiencies for revenue collection, Revenue Services Lesotho (RSL) has been working tirelessly to overhaul their business operations, by streamlining processes and leveraging FinTech and digital solutions. This is evident from the launch of digital solutions via its E-Services which include E-registration, E-Clearance Certificates, E-payments and E-tax platforms among many in 2023/24. These innovations are aimed at simplifying, enabling compliance as well as improving service delivery and customer experience. How has FinTech enabled tax compliance? With a click of button, taxpayers can now register, file tax returns and make payments from the comfort of their own homes. RSL’s digital solutions also allow taxpayers to instantly apply and receive their tax clearance certificates (TCC), reconcile their accounts and view statements, saving them time and giving them control over their tax matters. Digital Payment Solutions In the era of FinTech and digital payment solutions, paying your income tax obligations or customs duties should be hassle-free. To enable compliance, RSL has integrated with different service providers such as mobile money network operators (MNO) and commercial banks to modernise the tax collection system. Not only have these platforms enabled individuals and businesses to transact and manage their tax affairs effectively, but it has also introduced transparency. One such integration is with Standard Lesotho Bank’s (SLB) Unayo Payment Platform, launched on the 6th of November 2024 in Maseru, Lesotho. Unayo is a low-cost platform that gives Basotho access to financial services that include send/receive money options, bill payment and value-added services (VAS) all from the comfort of their mobile phones. The integration between RSL and SLB will facilitate secure, real-time processing of all tax payments, allowing you as a user to make your tax payments conveniently via Unayo. Taxpayers can opt to transact via the Unayo banking application, Unayo internet banking, an Unayo agent or Unstructured Supplementary Service Data (USSD) available 24/7 by dialing *388#. What are the benefits of digital tax payments? As someone who values speed, convenience and transparency, accessing RSL services through its digital platforms to submit my tax returns and comply has been beneficial. Below are some of the benefits I have experienced. Convenience: Through FinTech and digital payment solutions like Unayo, you can settle any tax obligation anytime, securely and seamlessly using your mobile device. Transparency: RSL’s digital solutions give you real time receipts and audit trail after making payments, enabling you to complete the transaction. Auto-reconciliation: You do not have to worry about reconciling your accounts or paying penalties on outstanding balances as this integration provides auto-reconciliation instantly. Tax and financial education: One of the biggest challenges is tax education. Taxpayers can also benefit from various financial education initiatives, resources and step-by-step guides to ensure compliance. Security and data privacy: Lastly, taxpayers do not have to worry about security or data privacy as such platforms prioritise robust security measures to ensure the protection of your data. It is an exciting time for our country as more financial service providers and authorities like Revenue Services Lesotho and Standard Lesotho Bank begin to leverage FinTech and digital platforms to modernise services. Not only do these innovations propel Lesotho into the fourth industrial revolution, but also gives us the opportunity use the services and ensure we comply. If your tax affairs are still not in order, I urge you to leverage these solutions and ensure you comply!

Tag: FinTech

How financial technology and digital platforms enable tax compliance in Lesotho

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