INCOME TAX
INTRODUCTION
This simplied tax flyer on income tax was
prepared as a guide to newly registered taxpayers
and other existing taxpayers seeking to better
understanding their tax obligations and rights to
smoothen their business operations.
The information provided in this flyer is sourced
from the following tax laws:
Law Nº 027/2022 of 20/10/2022 establishing
taxes on income
Law nº 051/2023 of 05/09/2023 amending Law
nº 027/2022 of 20/10/2022 establishing taxes on
income
WHAT IS TAX ON INCOME?
Tax on income is a tax imposed on prots of an
individual or a company that set up a business or
other taxable activities.
TAX PERIOD
The income tax is calculated for the calendar year,
which starts on 1st January and ends on 31st
December unless otherwise provided by the law.
The personal income tax shall be levied on an
individual annual income
Each tax period, a resident taxpayer is liable to
personal income tax from all domestic and foreign
sources
DISTINCT TYPES OF INCOME TAX
1. PERSONAL INCOME TAXE (PIT):
1.1 PIT- Flat tax regime
PIT REGIMES BASED ON ANNUAL TURNOVER
REALIZED
A lump sum tax rate of 3% is applied on a turnover
by business activities which realize a turnover
ranging between twelve million and one Rwandan
francs (FRW 12,000,001) and twenty million
Rwandan francs (FRW 20,000,000) per each tax
period. They can opt to carry out accounting
subject to authorization by the Tax Administration.
This decision is irrevocable for a period of three
(3) years starting from the date the taxpayer has
informed the Tax Administration.
Annual Turnover/
sales in (Frw)
Income tax quarterly
prepayment
Annual
Flat Tax
(Frw)
From 1-2,000,000
From 2,000,001-
4,000,000
From 4,000,001-
7,000,000
From 7,000,001-
10,000,000
From 10,000,001 -
12,000,000
No Tax
60,000
120,000
210,000
300,000
No tax
A quarterly
prepayment tax is is
calculated based on
the tax paid for the
previous annual tax
period divided by the
turnover of the same
tax period, times the
current quarterly
turnover
1.2 PIT - Lump sum tax regime
1.3 PIT Real regime
Annual Taxable Prot in
Rwandan francs (FRW) in 2023
Annual Taxable Prot in
Rwandan francs (FRW) in
2024 Going forward
Tax Rate
Tax Rate
0
0
1,200,0001
1,200,0001
2,400,001
720,0001
720,0001
From
From
720,000
720,000
More
2,400,000
More
1,200,000
1,200,000
To
To
0%
0%
30%
20%
20%
20%
10%
Taxable income is taxed following the real prot
realized according to the following tables:
2. CORPORATE INCOME TAX (CIT)
Corporate income tax is levied on business prots
received by taxpayers other than individuals
Taxable Business prot of companies is rounded
down to the nearest 1000 Rwandan Francs and
taxable at a rate of 28%.
For more information, please
contact us on Following address:
Call Center: 3004
E-mail:[email protected].rw
Website: www.rra.gov.rw
March 2024
@rrainfo Rwanda Revenue Authority Rwanda Revenue
3004
Tax declaration and tax payment:
However, a newly listed company on capital
market in Rwanda is taxed for a period of ve years
starting from the date of listing on the following
rates:
(a) 20% if that company sells at least 40% of its
shares to the public;
(b) 25% if that company sells at least 30% of its
shares to the public.
1. Annual tax declaration: Not later than 31st
March of the following tax period;
2. Quarterly prepayment: paid not later than 30th
June, 30th September, 31st December and
31st of March) of the year of taxable business
activities. This amount is reduced by the tax
withheld in that quarter, unless the taxable
income is not included in the total taxable
income.
Summarized table of income tax prepayments
(Corporate and individual business) is here below:
Tax period
Declaration and
Payment period
Quarter
January 1
st
to March
31
st
July 1
st
to September
30
th
April 1
st
to June 30
th
January1
st
to
December 31
st
1
3
2
Annual
April 1
st
to 30
th
June
October 1
st
to 31
st
December
July 1
st
to 30
th
September
January 1
st
to 31
st
March
of the following year
Note: The annual income tax is settled after
deducting the quarterly prepayments tax paid in
advance