ET · AfricaLS · Africa

Ethiopia vs Lesotho: tax rates compared

Between the two, Ethiopia's income tax rate (35%) tops Lesotho's (30%) by 5pp. The 200-country average is 28%: both sit above it.

Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.

At a glance

0102030405060Income30%35%Corporate25%30%VAT15%Wealth Tax0%
four shared taxes, side by side
Tax ET LSDifference
Income Tax35%30%ET +5 pplargest gap
Corporate Tax30%25%ET +5 pp
VAT15%15%match
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Ethiopia35%Source: PwC Worldwide Tax Summaries — Ethiopia, Individual - Taxes on personal income · as of 2026-07-15
Lesotho30%Source: Revenue Services Lesotho — Employees' Tax (Pay As You Earn) · as of 2026-07-20
Difference+5 ppEthiopia higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Ethiopia30%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Lesotho25%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference+5 ppEthiopia higher

Between the two, Ethiopia's corporate tax rate (30%) tops Lesotho's (25%) by 5pp. The 201-country average is 22.6%: both sit above it.

VAT

VAT, side by side
CountryRateSource
Ethiopia15%Source: PWC Worldwide Tax Summaries — Ethiopia (Corporate, Other taxes) · as of 2026-07-15
Lesotho15%Source: PwC — VAT and Indirect Taxes in Africa 2023, Lesotho · as of 2023-01-26
Difference0 ppdisplayed rates match

There's no gap here — Ethiopia and Lesotho both post a VAT rate of 15%. The 181-country average is 15%: Ethiopia matches the world average, Lesotho matches the world average. Ethiopia's figure is dated 2026-07-15 and Lesotho's 2023-01-26, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Ethiopia0%Source: PWC Worldwide Tax Summaries — Ethiopia (Individual, Other taxes) · as of 2026-07-15
Lesotho0%Source: Revenue Services Lesotho — official site (tax categories) · as of 2026-07-18
Difference0 ppdisplayed rates match

There's no gap here — Ethiopia and Lesotho both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.

Not covered for both countries yet: Capital Gains Tax, Crypto Tax.