Tax planning – Financial Education Learning Platform

By Tokiso Nthebe Having a positive and healthy relationship with your finances is a form of self-care. This also includes being tax compliant and filing your tax returns annually. The tax filing season begins on the 1st of April until the 30th of June every year where taxpayers i.e. individuals, partners and corporations who generated income in Lesotho between the 1st of April 2023 to the 31st of March 2024 are required to submit tax returns, file and pay tax. This blog post provides a step-by-step guide to file your tax returns. Step 1 - Register as a taxpayer The first step is to register as a taxpayer to be able to file your tax returns and get your Tax Identification Number (TIN). This is a unique number that identifies you as a taxpayer. There are two types of forms for individual and business taxpayers. You can register online without having to go to the Revenue Services Lesotho (RSL)'s office. To register and complete the e-Form click here. Step 2 - Prepare the required documents Before you can start with the filing process, you need to prepare the required documents depending on the type of taxpayer. If you in business, company or a sole trader who earned business income, the annual financial statements will be required. If you have incurred any related expenses to generate the income, you can deduct the expenses to determine how much profit you made during the financial year. For people who earned employment income, copies of their twelve-month payslips or P-16 forms will be required, which show how much salary you earned, how much tax was deducted, and the pension contribution made. Step 3 - Filing online The next step is to declare all the sources of income i.e. business, employment, property or other income and attach all the relevant documents depending on the type of the tax you are filing for. Complete the annual return form and the applicable marginal tax rates will be applied to ensure that you pay the due tax. To file and submit returns, click here to use the eTax platform and pay tax if there is an amount due. Step 4 - Apply for a tax clearance certificate Lastly, you can apply for a tax clearance certificate and access your account statement to ensure that everything is correctly capture. This will also enable you to reconcile how much tax you should have paid vs. how you actually paid. About the voluntary disclosure programme If you have never filed your tax returns and are non-compliant it is very important to act and comply because the consequences are dire. RSL introduced the Voluntary Disclosure Program in 2018 which provides an opportunity for anyone who has not paid tax to come forward to declare all the income, pay any outstanding taxes that were supposed to be paid earlier and comply. The tax authority will waive any additional taxes which may otherwise have accrued on the outstanding amount you are supposed to pay. The taxes that are due will, however, not be waived but you can plan to pay the tax liability at your own pace. Failure to declare and comply can lead to the tax authority imposing heavy assessments on how much tax you should pay; penalties being charged, or your business being closed due to non-compliance. This means that your business will not be granted a tax clearance certificate which may impact your business opportunities negatively. In conclusion, if you have not registered or filed your tax returns, it is important to do so immediately following the steps outlined above. If there is any tax payable, click the 'Pay Now' tab to process your payment. Tax compliance is important, do not neglect it! For more information, visit RSL's website at www.rsl.org.ls. You can also watch or listen to the episode of How to plan your taxes and file your returns with Revenue Services Lesotho on My Money Adventures Podcast available on YouTube, Spotify and Apple Podcasts. Visit our learning portal at www.mymoneyadventures.com for more personal finance content. Remember, money is an adventure. Let's enjoy the ride!

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Step-by-step guide to filing your tax returns

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Tax compliance is important, get your affairs in order.

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