Taxes in Rwanda

At a glance

Main taxes and filing rules described in Rwanda Revenue Authority guidance published in 2025.^1,2,3,4

Source: Rwanda Revenue Authority: Basic Information on Rwanda Taxation System (November 2025); Official Gazette of the Republic of Rwanda: Law No. 014/2025 amending Law No. 027/2022 establishing Taxes on Income (May 2025); Rwanda Revenue Authority: RRA Tax Handbook 2025; Rwanda Revenue Authority: Income Tax (2025)^1,2,3,4

Who needs to pay tax

Rwanda distinguishes personal income tax from corporate income tax. Personal income tax applies to an individual’s annual income; for a resident taxpayer, the 2025 tax guide describes income from domestic and foreign sources. Corporate income tax applies to taxable business profit. A business may also need to account for VAT, PAYE, withholding tax or excise duty, depending on its activities and registrations.^1,4

Tax registration brings filing obligations with it. RRA’s 2025 handbook states that returns are required for registered tax types from the date of registration, including periods with no business activity. Keep a record of each registered tax and its filing frequency rather than assuming that no sales means no return is due.³

Personal income tax for businesses

For an individual’s business income, the regime depends on annual turnover. A micro-enterprise with turnover of up to RWF 12 million pays a flat annual amount set by turnover band. The next regime covers annual turnover from RWF 12 million to RWF 20 million and charges 3% of turnover. Above RWF 20 million, the real regime uses annual profit as the tax base; taxpayers prepare financial statements to establish that profit.^1,4

Published annual flat tax amounts for micro-enterprises.¹

Source: Rwanda Revenue Authority: Basic Information on Rwanda Taxation System (November 2025)¹

Personal income taxpayers also make quarterly prepayments on 30 June, 30 September and 31 December. The calculation uses the previous annual tax divided by the previous annual turnover, multiplied by current-quarter turnover. Tax withheld during the quarter reduces the prepayment. These payments are not a substitute for the annual return.^1,4

Company tax and capital gains

The standard corporate income tax rate in the RRA’s 2025 income tax guide is 28% of taxable business profit. The annual income tax return and payment are due by 31 March of the following year. Companies with taxable revenue in the previous fiscal year may also have quarterly income tax prepayments due on 30 June, 30 September and 31 December.^3,4

A newly listed company may qualify for a reduced corporate rate for five years from its listing date: 20% if at least 40% of its shares are sold to the public, or 25% if at least 30% are sold. These rates depend on the stated listing and share-sale conditions.⁴

Capital gains tax is 10% of qualifying gains from the direct or indirect sale or transfer of shares, licences, debt instruments, options, guarantees and similar assets. The resident company whose shareholding changes, or the seller or buyer in other specified transfers, withholds the tax as applicable. The responsible party declares and pays it within 15 days after the month of the sale or transfer.^2,4

VAT, payroll and withholding

VAT is generally declared and paid monthly. A taxpayer with annual turnover below RWF 200 million may request quarterly filing instead. The return and payment are due within 15 days after the end of the relevant month or quarter. Confirm the filing frequency assigned to the business and use it consistently when preparing returns.^3,5

Employers withhold tax from employment income and declare and pay PAYE according to their annual turnover. The 2025 income tax guide sets quarterly filing, within 15 days after quarter-end, for taxpayers with annual turnover below RWF 200 million; those above that threshold file monthly, within 15 days after month-end. The guide also states that an employer who is not the first employer withholds employment tax at 30%. Casual labour is taxed at 15%, while monthly income not exceeding RWF 60,000 is rated at zero.⁴

Withholding tax is declared monthly, with payment due within 15 days after the month in which the payment was made or tax withheld. The 2025 guidance lists 5% on imported goods and 3% on public tenders; the tender calculation is based on the invoice amount excluding VAT. A taxpayer with Quitus Fiscal is exempt from the 3% public-tender tax. The handbook calls for a separate declaration for each withholding tax type.^3,4

Filing dates and excise periods

Recurring deadlines in the 2025 RRA guidance.^1,3,4,5

Source: Rwanda Revenue Authority: Basic Information on Rwanda Taxation System (November 2025); Rwanda Revenue Authority: RRA Tax Handbook 2025; Rwanda Revenue Authority: Income Tax (2025); Rwanda Revenue Authority: RRA Service Charter IV^1,3,4,5

For excise duty, the RRA Service Charter divides each month into three periods: the 1st to the 10th, the 11th to the 20th, and the 21st to month-end. Payment is due within five days after each period. Excise duty on imports is paid with customs duties. Customs duties are paid at customs, based on the goods’ CIF value at the first border of entry, before release.⁵

The tax period normally runs from 1 January to 31 December. A different period may apply where the law permits it. Returns and payments can be submitted after a tax period ends and before the relevant deadline.^1,3,5

Register and keep records

For a new taxable activity, organise compliance in this order:^1,3

• Register the business with the Registrar General within seven days of starting the business or activity. Company registration is handled through RDB.
• Use the taxpayer identification number assigned through registration on tax declarations and relevant business documents.
• Identify the tax types that apply and submit the required declarations and payments for each registered tax, including nil-activity periods.
• Issue invoices for taxable activities through an electronic invoicing system approved by the Tax Administration, known as an EBM.
• Keep invoices, financial statements, turnover and expense records, withholding details and proof of tax paid so the amounts can be reconciled to returns.

Source: Rwanda Revenue Authority: Basic Information on Rwanda Taxation System (November 2025); Rwanda Revenue Authority: RRA Tax Handbook 2025^1,3

Good records matter particularly under the real personal income tax regime and when calculating corporate taxable profit. Reconcile accounting records with invoices, filed returns and payment confirmations. Where tax has been withheld, retain evidence so the withholding can be reflected in the appropriate calculation or return.^3,4

Plan for each tax period

Build the filing calendar around the tax type and the business’s assigned frequency. VAT, PAYE and withholding tax can have different periods, while income tax combines an annual return with quarterly prepayments for eligible taxpayers. Set aside cash for amounts collected or withheld, and do not treat turnover as profit under the real income tax regime.^3,4

The rates and procedures summarised here reflect RRA guidance and laws published in 2025. Tax rules can change; before submitting a return, check the applicable current requirements with the Rwanda Revenue Authority or a qualified tax adviser.^1,2,3,4