Types of Business Taxes in Rwanda

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Overview of Key Taxes for Companies and Investors

Understanding Rwanda’s main tax types is essential for ensuring compliance and strategic financial planning. Below are the core business taxes applicable in Rwanda:

Corporate Income Tax

Rate: Standard rate of 30%
Reductions: Available for priority sectors or companies with RDB investment certification (e.g., 15% for exporters, 0% for international service centers)
Filing Frequency: Quarterly prepayments and annual tax returns

Value Added Tax (VAT)

Rate: 18%
Threshold: Mandatory registration if annual turnover exceeds RWF 20 million
Returns: Filed monthly via RRA’s e-filing system
Electronic Billing Machines (EBM): Required for VAT-registered businesses

Withholding Tax

Standard Rate: 15% on payments like dividends, interest, royalties, and service fees
Reductions: May apply under double tax treaties
Responsibility: Businesses must deduct and remit this tax when paying suppliers or service providers

PAYE (Pay As You Earn)

Applies To: All employee salaries
Rates: Progressive scale from 0% to 30% based on income brackets
Filing: Monthly payroll tax declarations are required

Capital Gains Tax

Rwanda does not have a separate capital gains tax; gains are taxed under corporate income if realized by a company

Local Taxes & Levies

Examples: Trading license fees, district-level levies for signage, waste collection, etc.
These vary depending on the business location and type

Great Selection

Understanding Rwanda’s main tax types is essential for ensuring compliance and strategic financial planning.

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