Investment Incentives and Tax Holidays in Rwanda

At a glance

Key investment tax incentives and their basic scope.^1,2,3

Source: Rwanda Revenue Authority: Corporate Income Tax (CIT); East African Community: Rwanda Standard Incentives for Investors; PwC: Rwanda - Corporate - Tax credits and incentives^1,2,3

These incentives are for registered investors and are additional to Rwanda’s standard corporate income tax rules. A preferential rate or holiday is not automatic: the investor must meet the conditions attached to the relevant category.^1,4

The standard rate and special regimes

The Rwanda Revenue Authority states that taxable business profit is subject to corporate income tax at 28% from 2024. The investment promotion and facilitation framework provides special rates for eligible registered investors. In practice, the first distinction is between the standard rate and a rate tied to a particular investor category or qualifying activity.¹

Some companies newly listed on Rwanda’s capital market have a separate five-year rate schedule from their listing date: 20% where at least 40% of shares are sold to the public, or 25% where at least 30% are sold. These listing rates are distinct from the investment incentives described below and should not be confused with the 15% rate for qualifying registered investors.¹

The 0% and 3% rates

The 0% preferential corporate income tax rate is available to an international company with its headquarters or regional office in Rwanda if it meets the investment code’s requirements. These include investing at least USD 10 million in Rwanda, carrying out at least USD 5 million a year in international financial transactions through a licensed Rwandan commercial bank, and using at least USD 2 million a year in Rwanda. The company must also establish effective administration and coordination in Rwanda and perform at least three specified functions there.²

The 0% rate can also apply to an entity established by a philanthropic investor, subject to approval by the Private Investment Committee. The 3% rate covers registered pure holding companies, investment special purpose vehicles and collective investment schemes that meet their applicable requirements. It also applies to qualifying foreign-sourced trading income of global or paper trading businesses, and foreign-sourced royalties of intellectual property companies. The rate on trading income or royalties is limited to that income category.^1,4

The 3% rate is not a general rate for every income stream earned by an eligible company. Check the relevant category and the source of income when assessing its tax treatment.^1,4

Who can qualify for 15%

The 15% preferential rate is for registered investors undertaking qualifying activities. It includes investors exporting at least 50% of turnover from goods and services produced in Rwanda, including business processing outsourcing. The export incentive excludes unprocessed minerals and tea or coffee without value addition.²

Examples of activities covered by the 15% regime.^2,3

Source: East African Community: Rwanda Standard Incentives for Investors; PwC: Rwanda - Corporate - Tax credits and incentives^2,3

The 15% category has exclusions and conditions beyond the broad sector labels. For example, the stated energy incentive excludes an investor with an engineering procurement contract executed on behalf of the Government of Rwanda. Some ICT retail, wholesale, repair and telecommunications businesses are also excluded from the relevant ICT category. Sector classification alone is therefore not enough to establish eligibility.²

Tax holidays

A registered investor may qualify for a corporate income tax holiday of up to seven years if it invests at least USD 50 million and contributes at least 30% of the investment as equity. The qualifying sectors include energy projects producing at least 25 MW, manufacturing, tourism, health, exports, and ICT investment involving manufacturing, assembly or services. The holiday is a separate incentive from the preferential CIT rates, and eligibility depends on meeting the investment and sector tests.^2,3

Other holiday periods identified in the investment incentives include:⁴

• Five years for microfinance institutions.
• Five years for developers of specialised innovation parks or specialised industrial parks.

Source: East African Community: Rwanda Investment Opportunities and Incentives⁴

Other tax relief and incentives

The investment package includes measures beyond corporate tax rates. A flat accelerated depreciation rate of 50% in the first year is listed for new or used assets. The incentives overview also identifies prompt VAT refunds, although the time taken in practice can differ: the US Department of State’s 2026 investment climate statement notes that firms reported reimbursement delays lasting months and occasionally years, despite the law requiring VAT rebates within 30 days of receipt by the Rwanda Revenue Authority.^4,5

A 0% withholding tax rate is listed for entities qualifying for the 3% CIT rate and for corporate service providers that qualify for the 15% rate. Other measures include a 5% withholding tax rate on dividends and interest paid to an investor investing in a company listed on the Rwanda Stock Exchange, and a 10% rate for specified payments to specialised innovation or industrial park developers.⁴

The incentives overview also describes relief for angel investors who invest at least USD 500,000 in a start-up: exemption from capital gains tax and withholding tax for the start-up’s first five dividend issuances. Registered film investors are listed for zero-rated local purchases of goods and services and a 0% withholding tax rate on qualifying foreign specialised services.⁴

How to assess eligibility

Use this sequence to identify the relevant incentive before relying on it in a project budget:^1,2,3,4

• Confirm that the business is, or will be, a registered investor under Rwanda’s investment promotion framework.
• Match the company’s legal and operating activity to a specific category: for example, international headquarters, holding company, qualifying export business or listed priority sector.
• Check the category’s thresholds and exclusions. These can include investment value, export share, fleet size, energy output, income source or specified business activity.
• For a tax holiday, test both the USD 50 million minimum investment and the 30% equity contribution, then check that the project falls within a qualifying sector.
• Keep the corporate tax rate, holiday, withholding tax treatment, depreciation and VAT refund rules separate when modelling the project. Different incentives have different eligibility tests.

Source: Rwanda Revenue Authority: Corporate Income Tax (CIT); East African Community: Rwanda Standard Incentives for Investors; PwC: Rwanda - Corporate - Tax credits and incentives; East African Community: Rwanda Investment Opportunities and Incentives^1,2,3,4

Registration is a prerequisite for the investment incentives described in the investment code. The RRA identifies these as special CIT rates for companies that benefit under the Investment Promotion and Facilitation Law of 2021. Because eligibility is category-specific and some rules include exclusions, confirm the applicable treatment with the Rwanda Development Board or Rwanda Revenue Authority before finalising a tax forecast.^1,2,4