Africa-Press – Lesotho. Revenue Services Lesotho (RSL) has officially launched the Agents of Foreign Firms (AFF) declaration process, a new initiative to ensure that all businesses – both local and foreign -contribute fairly to the country’s economy.
The AFF declaration system is designed to register and monitor local agents or representatives who act on behalf of foreign companies operating in Lesotho. By increasing oversight of these agents, RSL hopes to reduce tax evasion, increase transparency, and enhance revenue collection.
Launched in partnership with the Agents of Foreign Firms Association of Lesotho (AFFAL), the AFF declaration is part of a broader reform to regulate cross-border trade and improve economic governance. The move is grounded in Code 8294, listed under Schedule 34 of the business licensing and registration system maintained by the Ministry of Trade, Industry, and Business Development.
The new declaration process will be integrated into the ASYCUDA World Trade System and the Public Sector Revenue Management System (PSRM), enabling comprehensive tracking of trade and revenue flows.
According to the RSL, any individual or company in Lesotho that acts as a sales agent, service provider, importer, distributor, or representative for a foreign firm is required to register and declare their relationship with the foreign entity.
This includes agents working with foreign manufacturers, tech firms, logistics providers, and international brands.
During the launch, RSL’s Training and Education Officer, Mr. Relebohile ‘Molaoa, emphasised the importance of this initiative.
“This new process is not just for the benefit of the RSL, it benefits the country. With more registered agents, we will have a complete and more accurate taxpayer base.”
Molaoa added that the system allows RSL to track and verify transactions between foreign companies and their local agents. Previously, many foreign firms sold goods and services in Lesotho through local partners without being taxed, causing substantial losses of potential revenue.
The new system is expected to:
Enhance transparency in international trade
Increase domestic tax revenue
Create a level playing field for local businesses
Align Lesotho with global tax and trade standards
Strengthen labour protections by regulating informal employment practices
Molaoa also pointed out that unregulated operations by some foreign firms have led to capital flight, worker exploitation, and loss of formal employment opportunities for Basotho.
“This declaration process is a tool to curb these injustices,” he said.
Ntebaleng Makharilele Team Leader – RSL Digital Service Management also announced their new product where their clients apply for e-Filing called tax certificates and VAT 11, Online customs services digital taxpayer education tools where taxpayers can rate the services they got from the RSL.
“We have also created a platform where taxpayers can leave their contacts, so that we can get back to them,” said Makharilele, adding that the platform will enhance their services.
Through this reform, RSL aims to simplify tax processes, enhance service delivery, and build public trust in the tax system.
The RSL urges all agents of foreign firms to register immediately and ensure compliance. The declaration is not optional; it is now a legal requirement for doing business on behalf of foreign entities in Lesotho.
By closing loopholes and increasing accountability, the AFF declaration is a significant step toward building a stronger, fairer economy for all Basotho.
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