Country Trading Profiles Rwanda - Taxes

Tax Rates

Nature of the tax: VAT
Tax rate: 18%
Reduced tax rate: Some people are not subject to VAT: People who have diplomatic status, those involved in exports and the funders of projects initiated by an agreement between the Government and the donor.

Corporate tax

30% of the taxable profits

Capital gains taxation: The tax rate is 30% of the taxable profits, paid within the period prescribed for filing returns, not later than 30th June of the subsequent year.
Main allowable deductions and tax credit: Deductions for depreciation, training and research expenses, losses. For more information consult the Rwanda Revenue Authority.
Other corporate taxes: Array

Taxes due from individual businesses and incomes from remunerations	from 0 to 30%
360,000 RWF or less	0%
360,000 - 1,200,000 RWF	20%
More than 1,200,000 RWF	30%

Allowable deductions and tax credit: As explained in article 4 of law nº 43/2002 of 31/12/2002, the following have been added on to the list of exemption:
- Pensions, Guarantees, income and allowances given according to laws on pensions, compensations to incapacity caused by work related accidents or due to death, pensions to the incapacitated, widows, orphans and parents of soldiers who die on the battle field, victims of accidents due to work, congenial deformity...
- Diplomats and diplomatic staff, consuls and consular staff accredited to Rwanda, high ranking executives of international organisations as well as persons or companies exempted as per special agreements ratified according to Rwandan law.
- Medical expenses incurred by the employee or his/her legally accepted dependents which are reimbursed by the employer.
- Meals or refreshments provided by the employer to the employee in the premises operated by the employer or any other person who is appointed by the employer to do so.
- Expenses incurred by the employer on staff training.
- Refundable travel expenses incurred on work missions. It therefore differs from the allowance given to an employee to facilitate his movements to and fro work.
- Mission allowances.

Countries with whom a double taxation treaty have been signed: Rwanda has signed Tax conventions with Mauritius and Belgium
Withholding taxes: Dividends: 15%, Interests: 15%, Royalties: 15%.
Bilateral agreement