The Revenue Services Lesotho (RSL) is ushering in a new era of tax compliance and trade regulation with the launch of the Agents of Foreign Firms (AFF) declaration process, effective 1 July 2025. This milestone reform marks a decisive step towards formalising cross-border commercial transactions and empowering Basotho in the global trade landscape
In a directive issued by the Revenue Services Lesotho on 27 June 2025 and addressed to foreign exporters, it was noted that Lesotho’s economy has long faced challenges due to the activities of foreign exporters operating through informal and unregistered agents. These practices have contributed to tax evasion, facilitated capital flight through offshore earnings, and resulted in the exploitation of Basotho representatives who were often left unpaid, unprotected, and excluded from formal employment structures.
The newly established AFF process seeks to eliminate these practices by mandating full registration, compliance, and oversight of all foreign sales agency activities. The process is integrated into both the ASYCUDA World System and the Public Sector Revenue Management System (PSRM), enabling real-time monitoring and enforcement at all border points and customs channels.
The reform is grounded in Code 8294, reserved in Schedule 34 of the Business Licensing and Registration Regulations, issued by the Ministry of Trade, Industry, and Business Development. This regulation grants exclusive rights to indigenous Basotho to act as agents for foreign exporters in Lesotho. As a result, only licensed Basotho agents are now legally permitted to solicit orders on behalf of international suppliers, act as exclusive local representatives, and be recognised in customs declarations.
To reinforce this framework, RSL has developed a comprehensive compliance system that ensures only registered Basotho agents or formally approved exceptions may appear in customs submissions. Non-compliant foreign firms and unlicensed intermediaries are systematically excluded from official trade channels. This bold move aligns Lesotho with global best practices in tax administration and trade transparency.
Mayet & Associates assists with offering licensed Foreign Agency Services in accordance with the new AFF regulations. Our firm assists international suppliers seeking authorised representation in Lesotho and ensures that their operations are structured in full compliance with the law. In addition, we offer contract review services for suppliers who choose to appoint agents not affiliated with us, helping them identify legal risks and ensuring fairness and enforceability in their local commercial arrangements.
According to the RSL, the AFF declaration process is not merely an administrative change, it is a tool to secure revenue, eliminate exploitative practices, and promote the participation of Basotho professionals in international trade. As these reforms take effect, businesses are encouraged to work only with licensed agents and ensure that their contractual arrangements comply with Lesotho’s evolving trade and tax environment.
For guidance on appointing a compliant agent or for contract review assistance, contact Mayet & Associates for a confidential consultation.