Corporate Income Tax in Rwanda

Understand Rwanda’s Corporate Tax System for Better Planning

Corporate Income Tax (CIT) is one of the primary taxes businesses are required to pay in Rwanda. The system is structured to be transparent, efficient, and supportive of investment, particularly for companies aligned with national priorities.

Corporate Tax Rate

Standard Rate: 30%
Reduced Rates:
- 15% for registered exporters of goods and services (minimum 50% export volume)
- 0% for international service centers that export services and meet specific criteria

Taxable Income Components

Gross revenue from local and international sales
Capital gains on disposal of business assets
Passive income (dividends, interest, royalties) if not otherwise exempt

Allowable Deductions

Business expenses incurred wholly and exclusively in generating income
Depreciation of fixed assets (using straight-line or reducing balance method)
Research and development expenses
Loss carry-forward: Up to 5 years

Filing and Payment

Quarterly Prepayments: March, June, September, December
Annual Filing Deadline: March 31 of the following fiscal year
Method: All returns submitted through the RRA e-Tax portal

Who Must Pay?

All companies operating in Rwanda, including subsidiaries and branches of foreign entities
Resident companies are taxed on worldwide income; non-residents are taxed on Rwandan-source income only

Penalties for Non-Compliance

Late filing: Minimum fine of RWF 100,000
Interest on overdue tax
Possible suspension of tax clearance certificate

How Sokrab Helps

Sokrab offers:

Corporate tax planning and compliance audits
Accurate preparation of quarterly and annual tax filings
Optimization strategies to reduce your taxable income legally
RRA liaison and dispute resolution services

Make the most of Rwanda’s corporate tax regime with expert support from Sokrab Advisory.

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